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An investment center manager is considering three possible investments. The company's required return is 10%. The required asset investment, controllable margins, and the ROIs of each investment are as follows:
The investment center is currently generating an ROI of 23% based on $1,200,000 in operating assets and a controllable margin of $276,000.
Instructions
If the manager can select only one project, determine which one is the best choice to increase the investment center's ROI. Compute how much the investment center's ROI will be if the manager selects your recommendation.
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