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3 A company is considering constructing a plant to manufacture a proposed new product. The land costs $300,000, the building costs $600,000, the equipment costs

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3 A company is considering constructing a plant to manufacture a proposed new product. The land costs $300,000, the building costs $600,000, the equipment costs $250.000, and $100.000 additional working capital is required. It is expected that the product will result in sales of $750,000 per year for 10 cars at which time the land oan be sold for $400,000, the building for $350,000, and the equipment for $50,000 All of the working capital would be recovered at the EOY 10. The annual expenses for labour, materials and all other items are estimated to total $475,000. If the company requires a MARR of 15% per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method

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