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. 10.1896, accept

B. 2, accept

C. 1.1896, accept

D. 0.1896, reject

Note: WhenI calculated this I got answer D (0.1896) but since this is less than 1 it should be accepted. no?

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