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Loquat Division is evaluated based on residual income generated. In the most recent year, the Loquat Division generated a residual income of P2,000,000 and net

Loquat Division is evaluated based on residual income generated. In the most recent year, the Loquat Division generated a residual income of P2,000,000 and net income of P5,000,000. The target rate of retum for all divisions is 20%. What was the return on investment for the Loquat Division?

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