A Project Requires a Net Investment of $450,000

question 9

Multiple Choice

A project requires a net investment of $450,000.It has a profitability index of 1.25 based on the firm's 12 percent cost of capital.Determine the net present value of the project.

• A)$112,500
• B)$562,500
• C)$1,012,500
• D)$140,625