What is the eaw of product line

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Reference no: EM131807049

Micro Motors is evaluating a new line of products that will require several years of R&D. New lab equipment that costs $200,000 is needed, and salaries and other expenses will cost $300,000 per year for 4 years. Revenues from the new products begin at the end of year 5, and they are $250,000 per year higher than expenses. If Micro Motors uses an interest rate of 10% and a time horizon of 20 years, what is the EAW of this product line?

Reference no: EM131807049

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