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Sarasota, Inc. is considering a project that would have a ten-year life and would require a $2,458,000 investment in equipment.At the end of ten years,
Sarasota, Inc. is considering a project that would have a ten-year life and would require a $2,458,000 investment in equipment.At the end of ten years, the project would terminate, and the equipment would have a salvage value of $20,000.The project would require additional working capital $25,000 in the form of an increase in the minimum balance required by their bank and this working capital would be released at the end of the project. The project would provide net income each year as follows:
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