Should the company expand into this business

Reference no: EM13271681

It will be a 5 year project. The company will pay a consultant $100,000 and buy $500,000 in new equipment, which will appreciate to 0 over the 5 year period. Sales per year of $350,000 and cost of production of $100,000. 35% tax rate. 10% required return on project. Should the company expand into this business?

Reference no: EM13271681

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