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P13.2 (RI) Jakobs Ladder has capital employed of $10 million and currently earns an ROI of 15% per year. It can make an additional investment

P13.2 (RI) Jakobs Ladder has capital employed of $10 million and currently earns an ROI of 15% per year. It can make an additional investment of $2 million for a five-year life. The average net profit from this investment would be 14% of the original investment. The division's cost of capital is 12%

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