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in details please Exercise: Project Selection Ketchikan division in Alaskan Marine Services Corporation is considering purchasing a computerized diagnostic machine to aid in servicing marine

in details please
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Exercise: Project Selection Ketchikan division in Alaskan Marine Services Corporation is considering purchasing a computerized diagnostic machine to aid in servicing marine diesel engines Present Diagnostic Overall machine Avg Operating Assets $100,000 $25,000 $125,000 $20,000 $4,500 $24,500 Net Operating Income $15,000 $3,750 $18,750 Required return (15%) Residual Income ROI Question: if you are evaluated based on ROI, will you invest in the machine? should the firm invest in the machine? 22 22

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