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QUESTION 28 Project Alpha requires an initial outlay of $500,000 and has a profitability index of 1.5. The project is expected to generate equal annual

QUESTION 28

  1. Project Alpha requires an initial outlay of $500,000 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 18%. What is project Alphas net present value? Round to the nearest 1,000.

    $165,000

    $170,000

    $185,000

    $200,000

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