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By how much would termes annual gross profit increase

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The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 35%. Currently, sales are $680,000 per year and cost of sales are 65% of sales. The equipment is expected to last for 4 years with no residual value. The cash outflow expected at the beginning of the year is $283,200.

By how much would Terme's annual gross profit increase if the investment is undertaken?

Reference no: EM132329163

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