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a company is considering building a factory to make a proposed new product. land costs $ 3 0 0 , 0 0 0 , building

a company is considering building a factory to make a proposed new product. land costs $300,000, building costs $600,000, equipment costs $250,000, and $100,000 in additional working capital required. it is expected that this product will generate sales of $750,000 annually for 10 years and that at the end of the ten years the land can be sold for $400,000, the building for $350,000, the equipment for $50,000, and all working capital will be returned. Annual expenses for labor, materials and miscellaneous items are estimated to total $475,000. if the company wants MARR 25% per year on projects of comparable risk, should the company invest in this new product line? use the PW method.

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