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Question 1 3.33 pts Tycoon Company is considering a 10-year project that has a net present value of $150,000. The project's internal rate of retum
Question 1 3.33 pts Tycoon Company is considering a 10-year project that has a net present value of $150,000. The project's internal rate of retum is 8%. What discount rate is Tycoon using to compute the net present value of this project? Greater than 8% Greater than or equal to 8% Equal to 8% less than 8% D Question 2 3.33 pts Magnolia Company has a minimum required rate of return of 12%. Magnolia has three divisions, Western, Central and Eastern. During the current year, the Eastern Division reports a return on investment of 20% and residual income of $50,000. The Eastern Division has average operating assets of: O $250.000 $333.393 $416 677 $625 000 Question 3 3.33 pts Wave Engineering has total sales revenue of $3,600,000, operating income of $432,000, and a minimum required rate of return of 17%. Wave has both a Breakwater Division and a Seawall Division. During the current year, the Breakwater Division's return on investment is 20% and its turnover ratio is 2.5. What is the Breakwater Division's margin? Round to the nearest whole number and do not enter a percent sign or a decimal point (e.g., enter 89. not 89.0% or 0.89). D Question 4 3.33 pts Litmus Inc. has two divisions, East and West. During the month of June, Litmus reports operating income of $255,000 and common fixed costs of $550,000. The West Division reports sales of $1,400,000, a contribution margin of $560,000, and a segment margin of $470,000. The East Division reports sales of $1,500,000 and a contribution margin of $450,000. What is the East Division's segment margin for the month of June? $80,000 $335.000 $470.000 $805.000
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