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Paula Boothe, president of the Indigo Corporation, has mandated a minimum 9% return on investment for any project undertaken by the company. Given the company's

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Paula Boothe, president of the Indigo Corporation, has mandated a minimum 9% return on investment for any project undertaken by the company. Given the company's decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 9%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 14%return on investment or the past three years. This year is not expected to be different f om e ast three. Koch has us receive a opos invest L 2.00 na new line of energy drinks that is expected to generate $237,300 in operating income Calculate the residual income for the proposed new line of energy drinks. Residual income LINK TO TEXT LINK TO VIDEO If Martin Koch is evaluated based on residual income, will he choose to invest in the new line of energy drinks

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