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Alpha Inc. and Beta Co. are sheet metal processors that supply component parts for consumer product manufacturers.  Alpha has been in business since 1980 and is operating in its original plant facilities.  Much of its equipment was acquired in the 1980s.  Beta was stared two years ago and acquired its building and equipment (new) then.  Each firm has about the same sales revenue and material and labor costs are about the same for each firm.  What would you expect Alpha’s ROA (Return on Assets = Net Income / Assets)  to be relative to Beta’s?  Explain your answer.  What are the implications of this ROA difference for a firm seeking to enter an established industry?

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