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A hotel chain is considering renovating one of its properties. The renovation costs are estimated to be $2 million, and the renovations are expected to

A hotel chain is considering renovating one of its properties. The renovation costs are estimated to be $2 million, and the renovations are expected to increase the hotel's annual revenue by $500,000. If the hotel's annual fixed costs are $1.5 million and variable costs are 40% of revenue, should the renovation be undertaken if the hotel chain requires a minimum return on investment of 10%?

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