Question

Compute the PI statistic for Project X and note whether the firm should accept or reject...

Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 11 percent.

  Time: 0 1 2 3 4 5
  Cash flow: -83 -83 0 108 83 58

  rev: 11_25_2016_QC_CS-70617

Multiple Choice

  • 25.71, accept

  • 9.27, reject

  • 11.00, reject

  • 1.11, accept

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