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Compute the PI Statistic for Project X and Note Whether

Question 110

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. 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


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

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