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company is considering a new project for a 10 - year useful life . They are estimating a loan for the project . To start

company is considering a new project for a 10 - year useful life . They are estimating a loan for the project . To start the project they need to buy a land , a building has to be constructed and buy the required equipment : an amount of $ 100.000 additional working capital is required . It is expected that the product will result in sales of $ 900,000 per year for 10 years . They expect that all of the working capital would be recovered at the EOY 10. The annual expenses for labor , materials , and all other items are estimated to total $ 475,000 . If the company requires a MARR of 12 % per year on projects of comparable risk
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