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It is the end of the third quarter, and Lisa is evaluating the performance of two key divisions in the company. Both divisions had $49,000

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It is the end of the third quarter, and Lisa is evaluating the performance of two key divisions in the company. Both divisions had $49,000 cash available for investment in the fourth quarter, so Lisa is now analyzing each division before a potentiai investment. She has gathered the following condensed income statements and selected information from the balance sheet for each division. The company's minimum required rate of return is 11%, while its weighted average cost of capital is 8%. Its effective tax rate is 25% How much new operating income would each division need to generate in the fourth quarter to reach a positive RI by year-end? Assume again that each division purchases a $49,000 nondepreciable asset that is still included in operating assets

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