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in percent and in dollars ?? Preston Ceramics, a division of Monette Corporation, has an operating income of $85,000 and total assets of $425,000. The
in percent and in dollars ??
Preston Ceramics, a division of Monette Corporation, has an operating income of $85,000 and total assets of $425,000. The required rate of return for the company is 9%. The company is evaluating whether they should use return on investment (ROl) or residual income (RI) as a measurement of performance for its division managers. The manager of Preston Ceramics has the opportunity to undertake a new project that will require an investment of $175,000. This investment would earn $24,500 for Preston Ceramics. Preston Ceramics, a division of Monette Corporation, has an operating income of $85,000 and total assets of $425,000. The required rate of return for the company is 9%. The company is evaluating whether they should use return on investment (ROl) or residual income (RI) as a measurement of performance for its division managers. The manager of Preston Ceramics has the opportunity to undertake a new project that will require an investment of $175,000. This investment would earn $24,500 for Preston Ceramics
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