The allen company is planning an investment with the

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The Allen Company is planning an investment with the following characteristics:

Useful life

7 years

Yearly net cash inflow

$40,000

Salvage value

$0

Internal rate of return

20%

Discount rate

16%

The initial cost of the equipment is:

A) $240,080

B) $152,480

C) $144,200

D) Cannot be determined from the given information.

Reference no: EM13567059

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