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One of company divisions is considering, a new investment of 25$ on January 1 of its next fiscal year. operating income without the new investments
One of company divisions is considering, a new investment of 25$ on January 1 of its next fiscal year. operating income without the new investments is projected to be $22 and average invested capital without new investment is projected to be $132 the new investment is projected to generate a return of 12% the company cost of invested capital is 9% what is the divisions residual income if the new investment is made
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