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P11.55B ( LO 4, 5) South division had the following results for the year just ended: South is considering a new product line that would
P11.55B ( LO 4, 5) South division had the following results for the year just ended: South is considering a new product line that would involve the following: South's parent company, Globe Inc., has a company-wide ROI of 14% and pays bonuses based on divisional ROI. c. Assume a required rate of return of 10% on operationa assets invested in each division. Determine the effect on South's residual income if it introduces the new product. Would South's managers be encouraged to introduce the new product line
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