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Spring Valley corp. purchased a small warehouse for $450,000 for this space two years. The owner decides to expand and spend $175,000 plus new equipment

Spring Valley corp. purchased a small warehouse for $450,000 for this space two years. The owner decides to expand and spend $175,000 plus new equipment costs of $50,000. Using the additional space wisely Spring Valley will generate about $30,000 more in sales per year while incurring $12,500 in labor and variable costs. What is the amount of net capital expenditure on this expansion?

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