Your company is considering the purchase of a new production
system with an installed cost of $1,250,000. The cost will be
depreciated on a straight-line basis to zero over the five-year
life of the project, and the system can be sold at the end of the
project for $225,000. It will provide additional revenue of
$685,000 in the first year, and the additional revenue is expected
to grow 5% per year thereafter. The associated cost of goods sold
is estimated...