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Assume that MP accepted the investment of 10 million GBP from Kan Enterprises and purchased new machinery to support additional sales. As a result of
Assume that MP accepted the investment of 10 million GBP from Kan
Enterprises and purchased new machinery to support additional sales. As a
result of this investment, the asset base at the end of the year increases by 9
million GBP because depreciation of 1 million GBP on the new machinery is
to be charged against profits. For output levels of 4,200,000 units and
4,500,000 units, respectively, and starting with your data from Questions 2 and
3 from Part A, calculate the revised budgeted ROA and budgeted directors'
bonuses, and comment on your results
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