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.