What is project lmks net present value

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Reference no: EM13272011

Project LMK 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 LMK's net present value?

A) $600,000
B) $200,000
C) $120,000
D) $80,000

 

Reference no: EM13272011

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