Entrepreneurial Finance
6th Edition
ISBN: 9781337635653
Author: Leach
Publisher: Cengage
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Question

Transcribed Image Text:Question:
Your company wants to expand and it will cost $100,00.
Your current sales are $1 million and your sales growth is
12%. If you expect no increase in expenses, can you
expand next year?
a) No, your increase in sales will not cover the expense.
b) No, your expansion costs will go up.
c) Yes, your increase in sales will cover the expense.
d) Yes, your expansion costs will go down.
Expert Solution
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