(Present Value Tables Are Required

question 33

Multiple Choice

(Present value tables are required.) Lombard Corporation is evaluating the purchase of a new machine that would have an initial cost of $120,000.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)$ 14,400
• B)$ 96,000
• C)$ 150,000
• D)$1,000,000

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