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	5
Cash Flow:	-250	75	0	100	75	50

A.	-0.0977 percent, reject

B.	-9.77 percent, reject

C.	-24.41 percent, reject

D.	24.41 percent, accept

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