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Lanyard Company is considering an investment that will generate $600,000 in cash inflows per year for 7 years and has. $240,000 of cash outflows

Lanyard Company is considering an investment that will generate $600,000 in cash inflows per year for 7 years and has. $240,000 of cash outflows for the same period (before income taxes). The cost of the asset is $700,000 and it will be depreciated using straight-line depreciation over the 7 year life. The asset has no salvage value, Lanyard's tax rate is 40%. The cost of capital is 18%. Factors: Present Value of an Annuity (r= 18%) Year 1 0.8475 Year 2 1.5656 Year 3 2.1743 Year 4 2.6901 Year 5 3.1272 Year 6 3.4976 Year 7 3.8115 What is the net present value of this investment (rounded to the nearest dollar)? Year 6 3.4976 Year 7 3.8115 What is the net present value of this investment (rounded to the nearest dollar)? O None of the answer choices is correct. O 5504,434 O $275,744 O S123,284 O (S105,406)

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