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Plastic tables for institutional

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Mighty-lite inc., a manufacturer of plastic tables for institutional use is considering a capital spending program involving annual expenditures of 100,000 for each of the next five years. The firm estimates that its annual profit of 100,000 would increase by 50 percent when the capital program was completed. Assuming the firm has a 20-year life and the appropriate interest rate is 12 percent, should the capital spending program be implemented?

Reference no: EM13903478

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