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

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

A) 10 percent, reject
B) 14.22 percent, accept
C) 13.26 percent, accept
D) 18.96 percent, accept