Compute the PI statistic for Project X and note whether the firm should accept or...
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Accounting
Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent.
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow: | 250 | 75 | 0 | 100 | 75 | 50 |
Multiple Choice
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24.41 percent, reject
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9.77 percent, reject
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24.41 percent, accept
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0.0977 percent, reject
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