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Explain the company should fund the project

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Question 1: Special Controls, Inc is thinking of funding a project that would have a 10 year life and require an investment of $1,900,000 in equipment. There will be no salvage value of the equipment. The company uses a discount rate of 15% to analyze their investments. Using the estimated project income statement below, explain in detail whether the company should fund this project.

Sales                     $2,000,000

Expenses Materials      $620,000

Maintenance             $280,000

Deprec on equip        $150,000

Labor                    $700,000

Total Expenses        $1,750,000

Net Income            $250,000

Reference no: EM132583528

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