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he Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 25%. Currently, sales are 820,000 per year and cost

image text in transcribed he Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 25%. Currently, sales are 820,000 per year and cost of sales are 60% of sales. The equipment is expected to last for 6 years with no residual value. The cash outflow expected it the beginning of the year is $433,200. By how much would Terme's annual gross profit increase if the investment is undertaken? Multiple Choice $82,000 $123,000 $820,000 $205,000

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