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Management of Manning Corporation is considering a project that would require an investment of $ 2 8 2 , 0 0 0 and would last

Management of Manning Corporation is considering a project that would require an investment of
$282,000 and would last for 6 years. The annual net operating income from the project would be $107,000,
(note: operating income is affected by $43,000 of annual depreciation related to the investment). The scrap
value of the project's assets at the end of the project would be $54,000. What is the present value of the
future cash flows from this investment assuming Manning Co. has a discount rate of 18%?
A. $642,003
B. $544,680
C. $524,700
D. $394,266
E. $325,000

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