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A project has a net present value of $30,000, using a discount rate of 12%. If the profitability index is 0.20 the initial investment is

A project has a net present value of $30,000, using a discount rate of 12%. If the profitability index is 0.20 the initial investment is closest to:

a.

$600,000

b.

$150,000

c.

$360,000

d.

$250,000

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