Compute the PI statistic for Project X and note

jagguarpaw January 9, 2017 0 Comments

Question: Compute the PI statistic for Project X and note wh…

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

11.00%, reject

12.40%, accept

25.71%, accept

10.29%, reject