Question: Compute the PI statistic for Project Z if the appropriate cost of capital is 8 percent. Project Z Time: 0 1 2 3 4 5
Compute the PI statistic for Project Z if the appropriate cost of capital is 8 percent.
Project Z
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|---|
| Cash flow: | $ 2,200 | $ 590 | $ 720 | $ 890 | $ 540 | $ 340 |
Should the project be accepted or rejected?
Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
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