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Q. XYZ Manufacturing Corporation is contemplating to set up a new plant in Madang, PNG. The plant requires the expenditure of K100,000 in six month's time starting June 1, 2010. The Board of Directors approved the plan on May 25, 2010 together with the strategy explain how to and where to get the fund. The new plant is expected to give a return equivalent to 10% per annum on investment over a period of 5 years. In order to make the plan possible, K100,000 must be made available at the required time. Explain the subsequent occurred?
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