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please explain why the correct answer is E by showing the full formula ABC Ltd has a net operating income of $48,000 and average operating

please explain why the correct answer is E by showing the full formula image text in transcribed
ABC Ltd has a net operating income of $48,000 and average operating assets of $300,000. The required rate of return for the company is 15%. If the manager of ABC Ltd is evaluated based on residual income, will she want to make an investment of $100,000 that would generate additional net operating income of $15, 500 per year? a. Yes, because the return on the investment exceeds the minimum required rate of return. b. No, because the return on investment is lower than current return on assets. C. Yes, because this is an increase of $15, 500 in the operating income. d. No, because the residual income decrease. e. Yes, because this is an increase of $500 in the residual income

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