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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 of revenues, and working capital required in each year is expected to be of revenues in the
following year. The product requires an immediate investment of $ in plant and equipment.
a What is the initial investment in the product? Remember working capital.
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