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Westerville Company reported the following results from last year's operations. At the beginning of this year, the company has a $120.000 investment opportunity with the

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Westerville Company reported the following results from last year's operations. At the beginning of this year, the company has a $120.000 investment opportunity with the following cost and revenue. characteristics: The company's minimum required rate of return is 15%. 15-a. Assume that the contribution margin ratio of the investment opportunity was 50% instead of 60%. If Westerville's chief executive. officer will eam a bonus only if her residual income from this year exceeds her residuat income from last year, would she pursue the investment opportunity? Yes No 15.b. Would the owners of the company want her to pursue the investment opportunity? Yes No

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