Project LMK Requires an Initial Outlay of $400,000 and Has

question 51

Multiple Choice

Project LMK requires an initial outlay of $400,000 and has a profitability index of 1.5.The project is expected to generate equal annual cash flows over the next twelve years.The required return for this project is 20%.What is project LMK's net present value?

• A) $600,000
• B) $150,000
• C) $120,000
• D) $80,000

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