Doorwhistle Company makes doorbells. It has a weighted average cost of capital of 9% and total assets of $5,880,000Doorwhistle has current liabilities of $500,000 its operating income for the year was 5645,000 Doorwhistle does not have to pay any income taxes. One of the expenses for accounting purposes was a $150.000 advertising campaign run in early January The entire amount was deducted this year, although the Doorwhistle CEO believes the beneficial effects of this advertising will last 4 years Read the reguicements Requirement 1. Calculato residual income, assuming Doorwhistle defines investment as total assets Begin by determining the formula, then enter the amounts and calculate the RI for the year. RI Requirements 1. Calculate residual income, assuming Doorwhistle defines investment as fotal assets 2. Calculato EVA for the your Adjust both the your-end assets and operating income for advertising assuming that for the purposes of economic value added the advertising is capitalized and amortized on a straight line basis over 4 years 3. Discuss the difference between the outcomes of requirements 1 and 2 Which measure would you recommend and why? Help me so Print Done Clear all Check