pute 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 8 percent.   Time: 0 1 2 3 4 5 Cash flow: -82 -82 0 117 92 6

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section10.6: Profitability Index (pi)
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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 8 percent.
 

Time: 0 1 2 3 4 5
Cash flow: -82 -82 0 117 92 67
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You answer is not one of my options: 

58.74 %; accept

48.17 %; reject

8.00 %; accept

47.21 %; reject

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