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the result of firm investing properly and too much can weaken its financial. the resulting effect of this is always negative right. Sales$2,000,000 Average invested

the result of firm investing properly and too much can weaken its financial. the resulting effect of this is always negative right.

Sales$2,000,000

Average invested capital$500,000

Net income$300,000

Requiredrate of return18 percent

return on investment

residual income

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