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Aero Manufacturing was a small aerospace parts manufacturer with only a handful of employees. For the first four years, the company was able to maintain

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Aero Manufacturing was a small aerospace parts manufacturer with only a handful of employees. For the first four years, the company was able to maintain steady sales of $500, 000 per year As a result of increased competition. Aero Manufacturing incurred a loss of $100, 000 and revenue of only $300, 000 in year five As a result from years six through year eight the company closed its operations By the ninth year however, as a result of a new invention by one of the company s partners the company reopened its operations and made sales of $800, 000 The following sales continued until sales increased by 2% per year beginning in year eleven. a) Draw the cash flow diagram b) Determine the equivalent annual worth with an interest rate of 3% per year over a 15year study period

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