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Le Marche coffee, with a net book value of $3,000,000, and total assets of $6,000,000, has a long history of earning 20%. Last year, the

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Le Marche coffee, with a net book value of $3,000,000, and total assets of $6,000,000, has a long history of earning 20%. Last year, the coffee chain earned $1,200,000. The owner is considering acquiring another coffee shop in a nearby town. If the expansion increases income by 30%, what is the maximum amount of investment the owner can make in the new shop in order to maintain his desired 20% return? a. $1,200,000 b. $7,200,000 c. $3,600,000 d. $1,800,000

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