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Compute the PI Statistic for Project X and Note Whether

Question 47

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 below if the appropriate cost of capital is 10 percent. Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent. A) -.0977%, reject B) -9.77%, reject C) -24.41%, reject D) 24.41%, accept


A) -.0977%, reject
B) -9.77%, reject
C) -24.41%, reject
D) 24.41%, accept

Correct Answer:

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