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An electronics company expects a demand of 40,000 units per year for a special purpose component during the next six years. Net return per unit

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An electronics company expects a demand of 40,000 units per year for a special purpose component during the next six years. Net return per unit is $9. To produce the component, the company must buy a machine costing $1,560,000 with a life of six years and a salvage value of $30,000 after six years. The company estimates that repair costs will be $20,000 per year during Years 2 to 6. If the required rate of return on investment is 9%, should it market the component? The company should not market the component is the there is ig a su n ident as an

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