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F Question 1: Return on investment (ROI), residual income (RI) Generic Motors Corporation has two divisions. Division A Division B Investment (operating assets) A: $200,000
F Question 1: Return on investment (ROI), residual income (RI) Generic Motors Corporation has two divisions. Division A Division B Investment (operating assets) A: $200,000 B: $800,000 Profit A: $32,000 B:$104,000 The required rate of return (cost of capital) is 10% a year. a) Compute return on investment (ROI) for each division. ROI for A = % ROI for B = % b) Compute the residual income (RI) for each division. RI for A = $ RI for B = $
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