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Coolbrook Company has the following information available for the past year sales revenue Cost of woods old and sperating expenses Net operating income Average investedet
Coolbrook Company has the following information available for the past year sales revenue Cost of woods old and sperating expenses Net operating income Average investedet River Division Division $1,211,000 $1.912,000 816.000 1.292,000 327,000 $ 519,000 51,010,000 $1,480,000 The company's hurdle rate is 7.51 percent Required: 1. Calculate return on investment (RO) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent situation that follows: a. Operating income increases by 9 percent b. Operating income decreases by 10 percent. . The company invests $240,000 in each division, an amount that generates $117000 additional income per division d. Coolbrook changes its hurdle rate to 5, 51 percent Complete this question by entering your answers in the tabs below: R: Reg 2A R 25 Wed 2C. Reg 20 MacBook Pro TE re 5 96 1 2 3 5 6 7 8 W E R R T Y U O S D F F G H J K. L C C > B N. M - ommand command option
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