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The investment of $300,000 in a division returns a profit before interest of $15,000. However, head office charges a 4% cost of capital. The return

The investment of $300,000 in a division returns a profit before interest of $15,000. However, head office charges a 4% cost of capital. The return on investment (%) and residual income ($) are

Question 1 options:

5%; $12,000

5%; 3000

7%; $5000

20%; $12,000

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