Trevor's Tool Shop is considering investing in a new machine.  The company currently has $500,000 per year in sales.  The company has $265,000 per year in net income.  If the company invests in the new machine, it expects sales to increase by an additional $100,000 in year 1.  If Trevor wants to do a capital budgeting analysis of the project, he should begin the process of computing the cash flows for year 1 based on what number?

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To compute the cash flows for year 1 in a capital budgeting analysis Trev... View the full answer