Decker Scientific is considering an investment of $850,000 in a new product line. The company will make
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Decker Scientific is considering an investment of $850,000 in a new product line. The company will make the investment only if it will result in a rate of return of 20% per year or higher. If the revenue is expected to be between $290,000 and $325,000 per year for each of 5 years, determine if the decision to invest is sensitive to the projected range of income using an annual worth analysis.
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