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Coolbrook Company has the following information available for the past year: The company's hurdle rate is 7.76 percent. Recalculate ROI and residual income for each
Coolbrook Company has the following information available for the past year: The company's hurdle rate is 7.76 percent. Recalculate ROI and residual income for each division for each independent situation that follows: Operating income increases by 9 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) Operating income decreases by 11 percent. (Do not round your intermediate calculations "ROI" answers to 2 decimal places.) The company invests $250,000 in each division, an amount that generates $104,000 additional income per division. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) Coolbrook changes its hurdle rate to 5.76 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)
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