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Hubbard Division of the Market Company has an opportunity to invest in a new project. The project will yleld an incremen' operating income of $41,500
Hubbard Division of the Market Company has an opportunity to invest in a new project. The project will yleld an incremen' operating income of $41,500 on average invested assets of $465,000. Hubbard currently has net operating income of $190,000 on werage invested assets of $2,065,000. Market Company requires a 7% rate of return on new projects. Required: a. What is Hubbard's ROI before making an investment in the project? b. What is Hubbard's residual income before making an investment in the project? c. What is Hubbard's ROI after making the investment in the project? d. What is Hubbard's residual income after making the investment in the project? Complete this question by entering your answers in the tabs below. What is Hubbard's ROI before making an investment in the project? Note: Round percentage to 2 decimals. Relum on Iavestrment %
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