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%.

Time	0	1	2	3	4	5
Cash Flow	-250	75	0	100	75	50

a) 2.41, accept

b) 0.023, reject

c) 0.90, reject

d) 1.97, accept

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