Mock BM 301 Final Exam Capital Budgeting Question Lilian’s Lanterns is an old American company that produces a wide range of lanterns. After extensive research and development over the last ten years totaling $5,000,000 Lilian’s Lanterns has developed a new technology for even longer lasting, energy efficient, indestructible LED lanterns. Before introducing these new LED lanterns to the consumer market, a limited market study was conducted with the target consumers at a cost of $77,770. Based on this market study, Lilian’s Lanterns is confident that by being the first to market with this new technology, they will increase annual revenues by an estimated $2,225,550. The engineering and patent designs for the new machine required for this project have just been completed at a cost of $82,800 and will be used as a guideline to the installation if the project is approved. To sell the additional
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