Question 1 (5 Marks)Following consideration of a feasibility study which cost $50,000, Richside Industries is considering an expansion of its operations by introducing a plant extension. The new plant will cost $1,000,000 to erect and operate on some existing land owned

| November 30, 2018

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Question 1 (5 Marks)Following consideration of a feasibility study which cost $50,000, Richside Industries is considering an expansion of its operations by introducing a plant extension. The new plant will cost $1,000,000 to erect and operate on some existing land owned by Richside. Richside was considering selling the land, which has an estimated market value of $500,000, but has now decided to use it for the plant extension. Additional raw materials and inventory of $500,000 will be requ …

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