Question: 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

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 4

Cash Flow -250 75 0 100 75 50

Multiple Choice

A. -24.41 Percent, reject

B. 24.41percent, accept

C. -9.77 percent, reject

D. -0.0977 percent, reject

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