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Revenues generated by a new fad product are forecast as follows: Expenses are expected to be 4 0 % of revenues, and working capital required

Revenues generated by a new fad product are forecast as follows:
Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the
following year. The product requires an immediate investment of $60,000 in plant and equipment.
a. What is the initial investment in the product? Remember working capital.
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