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The CEO of Clarington Corporation is reviewing two one-year project opportunities from which she can choose only one to pursue. Project Arequires an investment of

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The CEO of Clarington Corporation is reviewing two one-year project opportunities from which she can choose only one to pursue. Project Arequires an investment of $500,000 in average operating assets during the year and is expected to earn $65,000 in net operating income. Project B requires a larger investment of $2,000,000 in average operating assets during the year and is expected to earn $220,000 in net operating income. If the CEO is choosing a project solely based on ROI, which project should the CEO pursue? Suppose the required rate of return is 10% on average operating assets. If Clarington Corporation's CEO is looking for a project that yields a larger residual income throughout the year, which project should she pursue

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