Piece of equipment is under considaration

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BE- A highly specialized, piece of equipment is under considaration. The product to be produces by this equipment is forecast to have a total worldwide demand of 10,000 units over the entire product life. The initial investment to acquire and install the equipment is $195,000. The variable cost to produce each unit will be $5 and the margin per unit is also $25. Which of the following best describes the situation the firm is facing?

Reference no: EM132108161

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