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: 75 75 0 100 75 50

A - 2, accept

B - 1.1896, accept

C - 0.1896, reject

D - 10.1896, accept

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