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Your company is interested in investing capital in buying machinery in about 5 years when...

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Accounting

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Your company is interested in investing capital in buying machinery in about 5 years when the LCC states machinery might fail. You manager says right now you only have $50k in capital to invest. Your company needs to have on hand $125k to buy the machinery and another $50k in working capital to make sure you have a safety net. After you buy the new machinery your manager asks you to invest half the working capital into another fund that needs to have another $125k at the end of the 5-year LCC to buy new machinery again. What can you say about this situation

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