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please help A merchandising company is considering a $700,000 upgrade to its retail and warehousing facilities that will allow the company to handle more products
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A merchandising company is considering a $700,000 upgrade to its retail and warehousing facilities that will allow the company to handle more products and attract more customers. The company anticipates that sales will increase by $350,000 and operating income will increase by $140,000 per year. If the company has a minimum required return on investment of 8.0%, what would be the residual income resulting from the upgrade? Answer: *Please place your answer in the highlighted cell and not move any cells. Use the space on the right hand side for your work.*Step by Step Solution
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