Determine if the decision toinvest is sensitive

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Reference no: EM131042584

Kahn Instruments is considering an investment of$500,000 in a new product line. The company willmake the investment only if it will result in a rateof return of 15% per year or higher. If the revenueis expected to be between $135,000 and $165,000per year for 5 years, determine if the decision toinvest is sensitive to the projected range of incomeusing a present worth analysis.

Reference no: EM131042584

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