Compute the PI Statistic for Project X and Note Whether

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