Compute the PI statistic for Project Z if the appropriate cost of capital is 7 percent. Project
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Question:
Compute the PI statistic for Project Z if the appropriate cost of capital is 7 percent.
Project Z
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|---|
| Cash flow: | $ 2,000 | $ 550 | $ 680 | $ 850 | $ 500 | $ 300 |
PI = ?
Should the project be accepted or rejected?
Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
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