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

Multiple Choice

0.1896, reject

2, accept

1.1896, accept

10.1896, accep

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