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A company has an opportunity to invest $ 1 0 0 , 0 0 0 in a project that will return $ 2 5 ,

A company has an opportunity to invest $

100, 000

in a project that will return $

25, 000 .

The company's cost of capital is

20

percent and a

30

percent ROI on existing business. What is the company's residual income?

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