(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?

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The profitability index is calculated as the present value of net cash inflows divided by the initial investment. Given a profitability index of 1.25 and an initial cost of $120,000, the present value of net cash inflows is 1.25 * $120,000 = $150,000.

(Present Value Tables Are Required