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LR Industries is considering the purchase of a new piece of equipment to meet the increased demand for its Model XL-4 tennis racket. The equipment

LR Industries is considering the purchase of a new piece of equipment to meet the

increased demand for its Model XL-4 tennis racket. The equipment costs $100,000 plus

$5,000 for installation and shipping, the resulting increased production is expected to

require additional NWC of $25,000.

What is the net investment that LR Industries will make on the new

equipment?

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