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A company's current net operating income is $26,000 and its average operating assets are $100,000. The company's required rate of return is 16%. A new
A company's current net operating income is $26,000 and its average operating assets are $100,000. The company's required rate of return is 16%. A new project being considered would require an investment of $25,000 and would generate annual net operating income of $6,250. What is the residual income of the new project?
a) (250)
b) 250
c)2250
d)1000
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