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Innovative Inc.is experiencing a boom for the products it has introduced recently.The estimated annual sales projected for the next five years are given below.The current capacity is equivalent to only $100 million sales.The company is considering the alternative of expanding capacity to an equivalent of $250 million sales.Assume a 25 percent pretax profit margin.What is the increase in total pretax cash flow (summed over all years) that would be enjoyed because of the expansion?
Linear Effects
The impact on a dependent variable that is directly proportional to the change in an independent variable.
Coefficient
A constant or numerical value that precedes and multiplies the variable within an algebraic expression.
Neck
The narrow part connecting two larger parts or structures, such as the part of a bottle connecting its body to its opening or the part of the body that connects the head to the torso.
Measurement Unit
A standardized quantity used to express the size, amount, or degree of a physical quantity.
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