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Case 4: (20 marks) An auto parts Company produces various extra additions to motor cars. It has just discovered an opportunity to invest in
Case 4: (20 marks) An auto parts Company produces various extra additions to motor cars. It has just discovered an opportunity to invest in producing air conditioners for the back seats of vans and minibuses. The investment project will cost $925,000 and will generate an estimated additional operating income of $95,500. Without the investment, the company will have average assets for the coming year of $29 5 million and expected operating income of $4.535 million.
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