The new printing machine will increase the company's revenue by $$290\mathrm{.}000$ per year but the variable costs will also increase by $$100\mathrm{.}000$ per year. The machine will be depreciated on a straight$-$line basis to zero salvage value over the $4$ years life of the project.The company believes it can sell

the machine at the end of $4$ years for $$20,000.$ The company will require additions to current assets of $$35,000$ at the beginning of the project, which wil fully recoverable at the end of the fourth year.

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To determine the net increase in revenue after accounting for the variable ... View the full answer