Question: 1. 2. 3. Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows

1.  1. 2. 3. Compute the PI statistic for Project X and
note whether the firm should accept or reject the project with the
2.
cash flows shown below if the appropriate cost of capital is 9
percent. Muttiple Cnoice 25.33 percent, accept 18.29 percenti teject 25.33 percent, accept
3.
18.29 percent, reject 9.00 percent, accept 19.25 percent, reject Suppose your firm
is considering investing in a project with the cash flows shown below,

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 9 percent. Muttiple Cnoice 25.33 percent, accept 18.29 percenti teject 25.33 percent, accept 18.29 percent, reject 9.00 percent, accept 19.25 percent, reject Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Use the poyback decision fule to evaluate this project, should it be accepted or rejected? Mutuple Choice 400 years reject 104 years, Accept 4.00 years, reject 104 years, accept 2 years, reject O years, accept Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 14 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Use the discounted payback decision rule to evaluate this project should it be accepted or rejected? Multiple Choice 135 years reject 257 yean. accept

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