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Business, 07.10.2019 22:00 bradenjesmt1028

You have estimated the life of your design to be three years. you expect that a capital investment of $20,000 will be required to get it into production. you also estimate, based on sales forecasts, that the design will result in an after-tax profit of $12,000 the first year and $16,000 the second year, and a $5,000 loss the third year. management has asked for an 18 percent return on capital investment. should we go ahead with the investment to produce the new design? explain.

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