Ray zor inc is considering an investment in new equipment, Financial Accounting

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Ray zor inc is considering an investment in new equipment

Ray Zor Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 4,000 units at $410 per unit. The equipment has a cost of $525,000, residual value of $75,000, and an eight-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone is shown below.

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