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 6 percent.

Time:	0	1	2	3	4	5
Cash flow:	-84	-84	0	109	84	59

Which of the following is correct?

a.) 6.00%, reject

b.) 46.31%, accept

c.) 38.90%, accept

d.) 56.57%, accept

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