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Huobard Division of the Market Company has an opportunity to invest in a new project. The project wil yield an incremental operating Income of $37.250
Huobard Division of the Market Company has an opportunity to invest in a new project. The project wil yield an incremental operating Income of $37.250 on average Invested assets of $480.000. Hubbard currently has operating income of $210,000 on average Invested assets of $2.060.000. Market Company requires a 4% rate of return on new projects. a. What is Hubbards Rol before malorg an nvestment in the project? Round your answer to 2 decimal places.) Resurn on investment b. What is Hubbard's residual income before making an investment in the project? Fes dual Income c. What is Hubbard's ROI after making the Investment in the project? (Round your answer to 2 decimal places.) Fieourn on investment d. What is Hubbard's residual Income after making the investment in the project! Residual Income
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