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Michelle Company has a Luxury Division and the division is considering investing in a new...

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Accounting

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Michelle Company has a Luxury Division and the division is considering investing in a new project. The incremental operating Income of the new project is estimated to be $73.400 and the average invested assets of the new project are estimated to be $901,000. The current operating Income of the Luxury Division is $426,000, based on average invested assets of $4,326,000. The hurdle rate for new projects required by Michelle Company is 71% Should the division accept the new project? Why? Show your work and reasoning. Toolbar navigation BIOS =

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