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The Lager division of Suds Brewery has a current return on investment of 10%. The...

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Accounting

The Lager division of Suds Brewery has a current return on investment of 10%. The company has established an 8% minimum rate of return for the division.The division's manager has two investment projects available, for which the following estimates have been made:

Project A Annual Income = $24,000, operating assets = $400,000

Project B Annual Income = $60,000, operating assets = $550,000

Which Project should be funded?

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