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Campbell Home Maintenance Company earned operating income of $6,768,700 on operating assets of $59,900,000 during Year 2. The Tree Cutting Division earned $1,181,610 on operating

Campbell Home Maintenance Company earned operating income of $6,768,700 on operating assets of $59,900,000 during Year 2. The Tree Cutting Division earned $1,181,610 on operating assets of $6,910,000. Campbell has offered the Tree Cutting Division $2,150,000 of additional operating assets. The manager of the Tree Cutting Division believes he could use the additional assets to generate operating income amounting to $445,050. Campbell has a desired return on investment (ROI) of 9.30 percent. Required

  1. Calculate the return on investment for Campbell, the Tree Cutting Division, and the additional investment opportunity.

  2. Calculate the residual income for Campbell, the Tree Cutting Division, and the additional investment opportunity.

Calculate the return on investment for Campbell, the Tree Cutting Division, and the additional investment opportunity. (Round your answers to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)

Calculate the residual income for Campbell, the Tree Cutting Division, and the additional investment opportunity.

Residual Income
Campbell Home Maintenance Company
Tree Cutting Division
Additional investment opportunity

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