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Berry is considering a capital investment costing 1 . 6 million. The investment is expected to have a 2 0 year life and Salvage value

Berry is considering a capital investment costing 1.6 million. The investment is expected to have a 20 year life and
Salvage value of $200,000. Based on management's thorough analysis, the company's net income is expected to increase by $450,000 if the asset is acquired. 1. Annual depreciation expense associated with the investment is $.2. The average amount to be invested in the asset over its estimated life is $.3. The assets return on average investment (ROI) is expected to be %

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