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Northern Pacific Heating and Cooling Inc. has a 6 -month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 40 percent with a 10 million investment in plant and machinery. The firm wants to maintain a 40 percent debt-to-total-assets ratio in its capital structure; it also wants to maintain its past dividend policy of distributing 45 percent of last year's net income. In 2001 , net income was 5 million. How much extern
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