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Power Corporation has two different project opportunities. The management of the company can choose only one project to pursue, between the two projects. Project A
Power Corporation has two different project opportunities. The management of the company can choose only one project to pursue, between the two projects. Project A requires an investment of $1,500,000 in average operating assets during the year and is expected to earn $500,000 in net operating income. Project B requires an investment of $2,000,000 in average operating assets during the year and is expected to earn $600.000 in net operating income. The required rate of return is 10% on average operating assets. Which of the following statements is true? Select all that apply. Residual income for Project B is $300,000. If the management is choosing a project only based on ROI, the management should choose Project B. If the management is choosing a project only based on residual income, the management should choose Project B. ROI for Project B is 30%. Residual income for Project A is $350,000. ROl for Project A is 40% The timeline below describes Anteater Company's whole process from the start of the selling process to the time of cash collection. Which of the following describes throughput time? Selling time + Wait time + Process time + Inspection time + Move time + Cash collection time Process time + inspection time + Move time Selling time + Wait time Wait time + Process time + Inspection time + Move time Selling time + Wait time + Process time + Inspection time + Move time Selling time + Wait time + Process time + Inspection time Process time + Inspection time + Move time + Cash collection time
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