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i need help with the residual income losses please PA10-1 (Algo) Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested
i need help with the residual income losses please
PA10-1 (Algo) Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5] Coolbrook Company has the following information avallable for the past year: The company's hurdle rate is 7.51 percent. Required: 1. Calculate return on investment (ROl) and residual income for each division for last year 2. Recalculate ROl and residual income for the division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 10 percent. c. The company invests $251,000 in each division, an amount that generates $106,000 additional income per division d. Coolbrook changes its hurdle rate to 5.51 percent. Complete this question by entering your answers in the tabs below. Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases by 9 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e, 0.1234 should be entered as 12.3476 \).).Lossamountsshouldbeindicatedwithaminussign.) Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 10 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (1.e., 0.1234 should be entered as 12.34%,). Loss amounts should be indicated with a minus sign.) Complete this question by entering your answers in the tabs below. Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $251,000 in each division, an amount that generates $106,000 additional income per division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12,34%.). Round your "Residual Income (Loss)" answer to the nearest whole dollars. Loss amounts should be indicated with a minus sign.) Step by Step Solution
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