LR Industries is considering the purchase of a new piece of equipment to meet th

Question

LR Industries is considering the purchase of a new piece of equipment to meet the

increased demand for its Model XL-4 tennis racket. The equipment costs $100,000 plus

$5,000 for installation and shipping, the resulting increased production is expected to

require additional NWC of $25,000.

What is the net investment that LR Industries will make on the new

equipment?

LR Industries is considering the purchase of a new piece of equipment to meet the

increased demand for its Model XL-4 tennis racket. The equipment costs $100,000 plus

$5,000 for installation and shipping, the resulting increased production is expected to

require additional NWC of $25,000.

What is the net investment that LR Industries will make on the new

equipment?

Explanation / Answer

Net Investment = 100000 + 5000 = 105000

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.