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?
A) $14,400
B) $96,000
C) $150,000
D) $1,000,000
Correct Answer:
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