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Just Like Mom's restaurant has the opportunity to expand their dining area that would increase their annual revenue from $500,000 currently to $650,000. The
Just Like Mom's restaurant has the opportunity to expand their dining area that would increase their annual revenue from $500,000 currently to $650,000. The expansion is projected to cost $50,000. Just Like Mom's experiences a 15 percent pre-tax profit margin. Using the following information, what is the increase in total pre-tax cash flow (summed up from year 1 to year 6 after accounting for the initial investment) that would be enjoyed because of the expansion? Year Annual Revenues $525,000 2 $550,000 3 $575,000 4 $600,000 5 $625,000 $650,000 greater than $25,000 but less than or equal to $30,000 less than or equal to $20,000 greater than $20,000 but less than or equal to $25,000 O greater than $30,000
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