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Project XYZ 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
Project XYZ 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 XYZ's net present value?
a)120,000
b) $80,000
c) $200,000
d) $600,000
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