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A. B. C. The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 30%. Currently, sales are $830,000 per

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The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 30%. Currently, sales are $830,000 per year and cost of sales are 65% of sales. The equipment is expected to last for 4 years with no residual value. The cash outflow expected at the beginning of the year is $289,200. By how much would Terme's annual gross profit increase if the investment is undertaken? What is the amount of depreciation deduction the company could expense annually assuming the straight-line depreciation method is used? Ignoring income taxes, what is the estimated annual net operating income increase/decrease

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