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Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.01 percent. Selected operating data for the three
Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.01 percent. Selected operating data for the three divisions follow: Sales revenue Cost of goods sold Miscellaneous operating expenses Average invented assets Required: Peak View Grand $ 326,000 $ 230,000 $ 304,000 207,000 39,000 1,370,000 1. Compute the return on investment for each division. 2. Compute the residual Income for each division. 108,000 33,000 890,000 199,000 39,000 1,215,000 Complete this question by entering your answers in the tabs below. Required Required 2 Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (1.e., 0.1234 should be entered as 12.34 %. ) ) Return on Investment Peak View Grand Required 2 >
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