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

Answer rating: 100% (QA)

B 156250 Profitability Index Present ... View the full answer