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A company is considering a plant to manufacture a proposed new product. The land costs $300,000 the building costs $600,000, the equipment costs $250,000, and

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A company is considering 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 years for 10 years at which time the land can 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 lobor, marberals, and all other items are estimated to total $475,000. If the company rewires a MARRR of 15 % per year on project of comparable risk, determine If should incessant the new produce line. Use the AW method

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