Question: 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

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 8 percent.

Time:	0	1	2	3	4	5
Cash flow:	-77	-77	0	112	87	62

72.65%, accept

46.76%, accept

8.00%, reject

60.73%, accept

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