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Peak Incorporated is deciding whether to undertake a new project. The firm estimates that the present value of the net cash flows from this project

Peak Incorporated is deciding whether to undertake a new project. The firm estimates that the present value of the net cash flows from this project would be about $877,500. If the projects estimated profitability index is 1.35, then what is the initial investment required to launch the project?

A : $650,000

B : $227,500

C : $1,185,000

D : $307,125

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