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A company's current net operating income is $21,200 and its average operating assets are $87,000. The company's required rate of return is 22%. A new
A company's current net operating income is $21,200 and its average operating assets are $87,000. The company's required rate of return is 22%. A new project being considered would require an investment of $24,600 and would generate annual net operating income of $6,700. What is the residual income of the new project?A.
A. $5,412
B. $1,288
C. $6,700
D. ($2,036)
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