Project LMK 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 LMK's net present value?
A) $150,000 B) $600,000 C) $80,000 D) $120,000
A
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Which of the following is a cash outflow connected to investing activities?
A. Repurchase of treasury stock. B. Purchase of short-term investments. C. Purchase of property, plant and equipment. D. Both B and C are outflows connected to investing activities E. All of the above are cash outflows connected to investing activities.
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Performance value is the likelihood a segment of source code can be used again to add new functionalities with slight or no modification
Indicate whether the statement is true or false
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