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Question 6 3.75 pts Trevor's Tool Shop is considering investing in a new machine. The company currently has $500,000 per year in sales. The company

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Question 6 3.75 pts Trevor's Tool Shop is considering investing in a new machine. The company currently has $500,000 per year in sales. The company has $265,000 per year in net income. If the company invests in the new machine, it expects sales to increase by an additional $100,000 in year 1. If Trevor wants to do a capital budgeting analysis of the project, he should begin the process of computing the cash flows for year 1 based on what number? O $265,000 O $100,000 O $600,000 O $500,000

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