(Answered) The allen company is planning an investment with the

Finance

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.

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