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C ital invested Sales Variable ex nses Fixed ex enses $4 500 ooo Ifthe new product line is added, an additional investment of S

C ital invested Sales Variable ex nses Fixed ex enses $4 500 ooo Ifthe new product line is added, an additional investment of S I , 200,000 is needed. Expected operating performance of the new product line per year is provided below. Sales Variable ex nses Fixed ex enses Tashee Company's cost of capital is 14%. $760,000

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