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 9 percent.

Time:	0	1	2	3	4	5
Cash flow:	-76	-76	0	101	76	51

	19.25%, accept
	9.00%, reject
	42.86%, accept
	25.33%, accept

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