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Please use the Pro forma Income Statement (Year #1-5) below to answer this question: In Year #3, the company wants to add another service. The

Please use the Pro forma Income Statement (Year #1-5) below to answer this question: In Year #3, the company wants to add another service. The initial investment would be $750,000 but there will be a return of approximately $30,000 in year #1 of the new service and $150,000 in Year #2 of the new service. Can the company do it without borrowing additional money?

Question 6 options:

  1. Yes
  2. No
  3. It cannot be determined
  4. Another service cannot be offered until the end of Year #5.

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