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

question 135

Multiple Choice

Project XYZ 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 XYZ's net present value?

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

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Definitions:

Proposal Structure

The format of a document designed to suggest a plan of action or idea, often including sections like introduction, methodology, and conclusion.

Purpose Heading

A title or heading in a document that indicates the aim or goal of the section it introduces.

Project Budget

An estimation of the costs, resources, and revenues necessary to complete a project within a defined timeframe.

Email Format

The structure and layout of an email, including its greetings, body, and signature, adhering to specific communication standards.