What is project Alpha net present value

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Question - 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 Alpha's net present value? Round to the nearest 1,000.

a. $165,000

b. $170,000

c. $185,000

d. $200,000

Reference no: EM133029759

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