Lakefront Company is considering investing in a new dock that will cost $560,000. the company expects...

 

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Lakefront Company is considering investing in a new dock that will cost $560,000. the company expects to use the dock for 5 years, after which it will be sold for $300,000. Lakefront anticipates annual cash flows of $110,000 resulting from the new dock. The company's borrowing rate is 8%, while its cost of capital is 10%. Calculate the net present value of the dock and indicate whether Lakefront should make the investment. $186.276 O $43,263 O $416,987 O S603.263 Lakefront Company is considering investing in a new dock that will cost $560,000. the company expects to use the dock for 5 years, after which it will be sold for $300,000. Lakefront anticipates annual cash flows of $110,000 resulting from the new dock. The company's borrowing rate is 8%, while its cost of capital is 10%. Calculate the net present value of the dock and indicate whether Lakefront should make the investment. $186.276 O $43,263 O $416,987 O S603.263