According to the most recent economic forecasts

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Assume your company has $50K in its cash account. According to the most recent economic forecasts, your best investment opportunity in the market will be returning 4% in the coming two years and 2% thereafter. A young engineer employee proposes, instead, to invest $50K on overhauling the production method which will leave the sales the same but is projected to improve the profit margin from 13% to 14%. What should be your “current sales number” for overhauling to be the preferred alternative?

Reference no: EM131968212

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