Sales per year for overhauling to be preferred alternative

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Reference no: EM132054526

Assume your company has $100K in its cash account. According to the most recent economic forecasts, your best investment opportunity in the market will be returning 8% in the coming five years and 5% thereafter You can invest S100K on overhauling the production method which will leave the sales per year the same but is projected to improve the profit margin from 10% to 12%. What should be your "sales per year for overhauling to be the preferred alternative?

Reference no: EM132054526

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