Question: Compute the PI statistic for Project Z if the appropriate cost of capital is 7 percent. Project Z Time: 0 1 2 3 4 5

Compute the PI statistic for Project Z if the appropriate cost of capital is 7 percent.

Project Z

Time: 0 1 2 3 4 5
Cash flow: $ 2,000 $ 550 $ 680 $ 850 $ 500 $ 300

Should the project be accepted or rejected?

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