Lanyard company is considering an investment that will, Ask an Expert

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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 for the same period(before income taxes). The cost of the asset is $700,000 and it will be depreciated using straight-line over the 7 year life. The asset has no salvage value. Lanyards tax rate is 40%. The cost of capital is 18%. What is the annual after-tax cash flow associated with this investment?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91979519

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