Compute the PI Statistic for Project X and Note Whether $$\begin{array} { l l l l l l l } \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash flow: } & - 250 & 75 & 0 & 100 & 75 & 50\end{array}$$

question 19

Multiple Choice

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. $$\begin{array} { l l l l l l l } \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash flow: } & - 250 & 75 & 0 & 100 & 75 & 50\end{array}$$

• A)-0.0977 percent, reject
• B)-9.77 percent, reject
• C)-24.41 percent, reject
• D)24.41 percent, accept

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