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A company is considering purchasing factory equipment that costs $320,000 and is estimated to have a $20,000 salvage value at the end of its 6-year

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A company is considering purchasing factory equipment that costs $320,000 and is estimated to have a $20,000 salvage value at the end of its 6-year useful life. If the equipment is purchased, annual revenues are expected to be $90,000 and annual operating expenses including depreciation expense are expected to be $78,000. The straight-line method of depreciation would be used. If the equipment is purchased, the annual rate of return (rounded) on this equipment is 7.1% 6.7% 7.5% 3.5% If there were 100,000 pounds of raw materials on hand on January 1, 70,000 pounds are desired for inventory at January 31, and 420,000 pounds are required for January production, how many pounds of raw materials should be purchased in January? 420,000 pounds 520,000 pounds 450,000 pounds 390,000 pounds

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