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Lewis Division purchased an operating asset expected to benefit the division for 12 years for a cost of $300,000. Revenue and operating expenses are expected

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Lewis Division purchased an operating asset expected to benefit the division for 12 years for a cost of $300,000. Revenue and operating expenses are expected to remain the same. The manager of the division is evaluated using ROI. What effect will acquiring the new asset have on the performance measurement of the manager over the first two years of using the new asset? The cost of capital will increase. ROI will increase ROI will decrease Expenses will decrease

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