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Capital Intensity Ratio (CIR) of a Firm is 1.20. Currently the Firm is operating at Full Capacity. Marketing Department has indicated that Sales for the

Capital Intensity Ratio (CIR) of a Firm is 1.20. Currently the Firm is operating at Full Capacity. Marketing Department has indicated that Sales for the next year is going to increase by 10% from current level of $100m per year. This means firms would need additional assets worth approximately:

a. $ 20 m

b. $ 12 m

c. $ 5 m

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