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ACCT 505 Course Project 2: Hampton Company

ACCT 505 Course Project 2: Hampton Company

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ACCT 505 Course Project 2: Hampton Company

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ACCT 505 Course Project 2: Hampton Company

Capital Budgeting Decision

Hampton Company: The production department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the cans instead of purchasing them. The equipment needed would cost $1,000,000, with a disposal value of $200,000, and would be able to produce 27,500,000 cans over the life of the machinery. The production department estimates that approximately 5,500,000 cans would be needed for each of the next 5 years.

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