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9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Round your
9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%.)
11. What is last years residual income?
12. What is the residual income of this years investment opportunity?
13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?
Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales 1,400,000 Variable expenses Contribution margin Fixed expenses 720,000 680,000 470,000 Net operating income 210,000 875,000 Average operating assets At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: $ 560,000 Sales Contribution margin ratio Fixed expenses 70% of sales 336,000 The company's minimum required rate of return is 15%Step by Step Solution
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