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The jewelry Division of Diamond Company is considering an investment in a new project. The project has an estimated cost of $1,000,000. If Diamond Company

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The jewelry Division of Diamond Company is considering an investment in a new project. The project has an estimated cost of $1,000,000. If Diamond Company has a target rate of return of 12%, how large does the return on investment on this project need to be to generate $150,000 of residual income? Select one: a. 25% b. 27% c. 12% d. 15%

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