Accounting. A companys last year were $500 A company's sales last year were $500 millionand its manufacturing plant operated at 85% ofcapacity. The actual amount of fixed assets was$200 million. What total amount of fixed assetsdoes the company need if it wants to increasesales by 20%?1) $2042) $2723) $1814) $1605) $241

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

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Author:MOYER

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Chapter10: Capital Budgeting: Decision Criteria And Real Option

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Problem 3P

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A company's sales last year were $500 million and its manufacturing plant operated at 85% of capacity. The actual amount of fixed assets was $200 million. What total amount of fixed assets does the company need if it wants to increase sales by 20%? 1) $204 2) $272 3) $181 4) $160 5) $241