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Winthrop Company has an opportunity to manufacture and sell a new product for a five-year...

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Accounting

Winthrop Company has an opportunity to manufacture and sell a new product for a five-year period. To pursue this opportunity, the company would need to purchase a piece of equipment for $160,000. The equipment would have a useful life of five years and zero salvage value. It would be depreciated for financial reporting and tax purposes using the straight-line method. After careful study, Winthrop estimated the following annual costs and revenues for the new product:
\table[[Annual revenues and costs:,],[Sales revenues,$310,000
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