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AmeriTextile Co. is considering opening a production and shipping facility in Dallas to keep up with demand for its pillows. The facility will require an
AmeriTextile Co. is considering opening a production and shipping facility in Dallas to keep up with demand for its pillows. The facility will require an initial investment of $280,000, and an annual operating cost of $26,000. It will have a $74,500 salvage value after 9 years. Calculate the net present worth of this investment if the company's minimum attractive rate of return is 5% per year. (25 points) 1
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