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$40,000 of Roanokes assets are used by the Metals division. The companys required rate of return is at 9%. Last year, the Metals division reported
$40,000 of Roanokes assets are used by the Metals division. The companys required rate of return is at 9%. Last year, the Metals division reported Sales Revenue of $30,000 and Operating Expenses of $25,000. The Metals division has an opportunity to invest in a new project that is estimated to have a return on investment of 10%. Compute the Return on Investment (ROI) and Residual Income (RI) for the Metals division based on last years performance.
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