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calculate the minimum income and residual income for each of the following segments and determine if a segment should be dropped Calculate the minimum income
calculate the minimum income and residual income for each of the following segments and determine if a segment should be dropped
Calculate the minimum income and Residual Income (RI) for each of the following segments and determine if a segment should be dropped based on Residual Income (RI) and assuming we have a desired minimum income (or cost of capital) of 13%. Segment 1 Segment 2 Segment 3 Net Income $135,000 $60,000 $225,000 Net Cash Flow $150,000 $75,000 $240,000 Investment $900,000 $750,000 $1,125,000 Step by Step Solution
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