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

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A company is considering constructing a plant to manufacture a proposed new product. The land costs is $300,000, the building costs $600,000, the equipment costs $250,000, and $100,000 additional working capital is required. It is expected the product will result in sales of $750,000 the first year increasing by 2% for the next 9 years. Expenses are estimated to total $475,000 the first year increasing by $1,000 each year for the next 9 years. At the end of 10 years it is estimated the land can be sold for $400,000, the building can be sold for $350,000, and the equipment sold for $50,000. At the EOY 10, the working capital will be recovered and returned to the company. The company's MARR for all 10 years is 15%. What is the ERR for this proposal when =MARR. Based on your calculations, is your decision to invest in the plant the same or different

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