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Avocado Company has net operating income of $ 8 0 , 0 0 0 on sale revenue of $ 1 , 0 0 0 ,

Avocado Company has net operating income of $80,000 on sale revenue of $1,000,000. Average invested assets are $500,000, and Avocado Company has an 8% hurdle rate. What is the residual income?
Multiple Choice
$100,000
$20,000
$120,00
$40,000

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