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17 The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 25%. Currently, sales are $750,000 per year and

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17 The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 25%. Currently, sales are $750,000 per year and cost of sales are 55% of sales. The equipment is expected to last for 5 years with no residual value. The cash outflow expected at the beginning of the year is $357,500. By how much would Terme's annual gross profit increase if the investment is undertaken? 00:51:02 Multiple Choice O $750,000 O $103,125 O $84,375 O $187,500

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