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A company's current net operating income is $18,000 and its average operating assets are $133,000. The company's required rate of return is 7%. A new
A company's current net operating income is $18,000 and its average operating assets are $133,000. The company's required rate of return is 7%. A new project being considered would require an investment of $17,300 and would generate annual net operating income of $4,375. What is the residual income of the new project?
A. $3,164 | |
B. ($3,115) | |
C. $1,211 | |
D. $4,375 Please show work so I know how to do this next time. Thanks!! |
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