Lawson Inc. is expanding its manufacturing facility, which requires a $4 million investment in new equipment and plant modifications. Lawson's sales are expected to increase by $3 million per year as a result of the expansion. Cash investment in current assets averages 30% of sales; accounts payable and other current liabilities are 10% of sales. What is the estimated total investment for this expansion?

Answer rating: 100% (QA)

To calculate the estimated total investment for the expansion we need to consider the cash investmen... View the full answer