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Because of Terra Dorsey's brilliant engineering mind ten years ago, her company, Dorsey's engineering, offered to buy Justin Obasi's firm for 500 million. Dorsey offered

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Because of Terra Dorsey's brilliant engineering mind ten years ago, her company, Dorsey's engineering, offered to buy Justin Obasi's firm for 500 million. Dorsey offered 280 million down and the remaining balance at the end of year 1. Dorsey's salary payments to employees would be 2.5 million annually starting year 1 and continue throughout the ownership. Today, Dorsey would only be able to sell Justin Obasi's firm for a profit of 89 million. To at least break even, what amount must Dorsey's engineering recover from this sale, and also the annual worth, if they had made the deal at a MARR of 12%? (10pts) 4

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