Question: Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent. Project Z Time: 0 1 2 3 4 5

Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent.

Project Z

Time: 0 1 2 3 4 5
Cash flow: $ 2,100 $ 570 $ 700 $ 870 $ 520 $ 320

Should the project be accepted or rejected?

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