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5 ints 1 00:40:48 eBook References Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle
5 ints 1 00:40:48 eBook References Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 7.26 percent. Required: River Division $ 1,206,000 893,000 $ 313,000 $ 1,070,000 1. Calculate return on investment (ROI) and residual income for each division for last year. Stream Division $ 1,802,000 1,294,000 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 11 percent. $ 508,000 $ 1,560,000 c. The company invests $250,000 in each division, an amount that generates $118,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases by 9 percent. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign. ROI Residual Income (Loss) River Division % Stream Division % < Req 1 Req 2B > Show less Help
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