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Joshua is the manager of the Farming segment of Imminent Machinery Inc. Currently, his segment has sale of $10 million, net operating income of $3
Joshua is the manager of the Farming segment of Imminent Machinery Inc. Currently, his segment has sale of $10 million, net operating income of $3 million, and average operating assets of $15 million. Avri is evaluated by ROI. For Joshua to decide to invest in a project that requires an investment of $2 million, how much should be the minimum net operating income from that project? (please provide step-by step answer; otherwise, no point will be awarded)
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