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QUESTION 7 Tries remaining: Points out of 20.00P Flag question ROI, Residual Income, and EVA with Different Bases Envision Company has a target return on
QUESTION 7 Tries remaining: Points out of 20.00P Flag question ROI, Residual Income, and EVA with Different Bases Envision Company has a target return on capital of 12 percent. The following financial information is available for October (S thousands): Software Division Consulting Division Venture Capital Division (Value Base) (Value Base) (Value Base) Book Current Book Current Current Sales ncome 12,250 11,700 16,400 20,020 Assets Liabilities 10,000 10,000 4,000 14,000 $100,000 $100,000 $200,000 $200,000 $800,000 800,000 51,920 70,000 90,000 100,000 110,000 610,000 590,000 40,000 56,730 40,000 Required a. Compute the return on investment using both book and current values for each division. Round answers to three decimal places. Book Value Current Value Software 13 Consulting Venture Capital b. Compute the residual income for both book and current values for each division. Use negative signs with answers, when appropriate. Book Value Current Value Software 70,000 Consulting Venture Capital
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