(Present Value Tables Are Required

question 10

Multiple Choice

(Present value tables are required. ) Lenardi Corporation is evaluating the purchase of a new machine that would have an initial cost of $125,000.This new machine would have a profitability index of 1.25.The company's discount rate is 12%.What is the present value of the net cash inflows of the new machine project?

• A)$15,000
• B)$156,250
• C)$100,000
• D)$1,041,667

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