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 11 percent Time 0 1 2 3 4 5 Cash flow 83 83 0 118 93 68 rev 08 07 2017 QC CS 70617, 08 18 2020 QC CS 223310 Multiple Choice Top of Form 29 16, accept 30 12, accept 11 00, reject 1 36, accept

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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 11 percent.

Time:

Cash flow:

-83

118

rev: 08_07_2017_QC_CS-70617, 08_18_2020_QC_CS-223310

Multiple Choice

Top of Form

29.16, accept

30.12, accept

11.00, reject

1.36, accept

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