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Hubbard Division of the Market Company has an oppoitunity to invest in a new project. The project will yleid an incremental operating income of $42,000
Hubbard Division of the Market Company has an oppoitunity to invest in a new project. The project will yleid an incremental operating income of $42,000 on average invested assets of $450.000. Hubbard currently has operating income of $730,000 on average invested assets of $2,070,000. Market Company requires a 5$ rate of return on new projects a. What is Hubbardis ROI before making an investment in the project? (Round your answer to 2 decimal places.) b. What is Hubbard's residual income before making an investment in the project? c. What is Hubbard's ROl after making the investment in the project? (Round your answer to 2 decimal places.) d. What is Hubbard's residual income after making the investment in the project
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