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4. Suppose that the company's minimum required rate of return on operating assets is 20% and that performance is evaluated using residual income. a.

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4. Suppose that the company's minimum required rate of return on operating assets is 20% and that performance is evaluated using residual income. a. Compute East Division's residual income for last year; also compute the residual income as it would appear if the new product line were added.. Present New Line Total Residual income b. Under these circumstances, if you were in Grenier's position, would you accept or reject the new product line? O Accept O Reject

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