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A company's current net operating income is $24,000 and its average operating assets are $96,000. The company's required rate of return is 20%. A new
A company's current net operating income is $24,000 and its average operating assets are $96,000. The company's required rate of return is 20%. A new project being considered would require an investment of $23,000 and would generate annual net operating income of $5,520. What is the residual income of the new project?
$1,000
($230)
$230
$920
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