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I. Winner Where She Goes, Inc. is considering an investment of $800,000 in a new equipment line for boning and

packaging beef products. The equipment has an expected life of 5 years. Sales are expected to be 900,000 units per year, at a price of $3 per unit. Fixed costs excluding depreciation are $300,000 per year, and variable costs are $1.80 per unit. The equipment will be depreciated over 5 years using the straight line method with a salvage value of zero. The corporation pays income tax at a rate of 34%.

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