Lenardi Corporation is evaluating the purchase of a new machine that would have an initial cost of
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Question:
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
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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