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Home Q & A Board Other Fields Homework Help Business Accounting
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bernie2981 bernie2981
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8 years ago Edited: 8 years ago, duddy
(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) $1,041,667
B) $100,000
C) $15,000
D) $156,250
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Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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8 years ago
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bernie2981 Author
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8 years ago
You're such a dedicated member, I very much appreciate the help.

Marking this solved ✓
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