In: Finance
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.
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow: | -80 | -80 | 0 | 115 | 90 | 65 |
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