Compute the PI Statistic for Project X and Note Whether

question 98

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.

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

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