Lanyard Company Is Considering an Investment That Will Generate $600,000

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 depreciation over the 7 year life.The asset has no salvage value.Lanyard's tax rate is 40%.The cost of capital is 18%.
What is the annual after-tax cash flow associated with this investment?

A) $176,000
B) $260,000
C) $216,000
D) $256,000
E) None of the answer choices is correct.