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Masters Company currently produces cereal targeted to consumers over 40 years of age. Sales have steadily declined over the last 10 years resulting in a

Masters Company currently produces cereal targeted to consumers over 40 years of age. Sales have steadily declined over the last 10 years resulting in a decision to shut down the manufacturing plant. The plant was built 40 years ago at a cost of $28,000,000 and is now fully depreciated. A rival cereal company has offered to purchase the existing facility for $15,000,000 in as is condition.

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