Joshua is the manager of the Farming segment of Imminent Machinery Inc. Currently, his segment...
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Joshua is the manager of the Farming segment of Imminent Machinery Inc. Currently, his segment has sale of $20 million, net operating income of $5 million, and average operating assets of $25 million. Joshua is evaluated by ROI. The minimum required rate of return for Imminent Machinery Inc. is 10%. For Joshua to decide to invest in a project that requires an investment of $1 million, how much should be the minimum net operating income from that project? (please provide step-by step answer; otherwise, no point will be awarded).
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