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Problem 1 (See pages 209 - 210 and Practice Problem 2 with solution, Page 219) Mountain Health System, Inc. is a well-known and reputable supplier

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Problem 1 (See pages 209 - 210 and Practice Problem 2 with solution, Page 219) Mountain Health System, Inc. is a well-known and reputable supplier of integrated heart monitoring devices. The firm is currently debating whether to expand its sales overseas. While the firm expects an extra $10,400,000 in sales if it enters foreign markets, it also knows that 6% of its sales will ultimately be uncollectible. In addition, selling costs will be 4% on all new sales and the firm's production costs are 60% of sales. Mountain Health System's tax rate is 30%. (PLEASE SHOW YOUR WORK). a) Calculate Mountain Health System's additional net income from the new sales. b) If the average investment in accounts receivable is $2,000,000 and management requires that any new project earn a minimum of 12% return on investment. Should the firm enter the foreign markets? Please explain

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