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The Western Division of Claremont Company had net operating income of $142,000 and average invested assets of $552,000. Claremont has a required rate of return
The Western Division of Claremont Company had net operating income of $142,000 and average invested assets of $552,000. Claremont has a required rate of return of 12.75 percent. Westem has an opportunity to increase operating income by $44,000 with a $83,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your ROI answers as a percentage rounded to two decimal places, i.e. 0.1234 should be entered as 12.34%). Round your Residual Income Loss answers to the nearest whole do lar. ntly: Return on Investment (RO Residual Income (Loss) Proposed Project: Return on Investment (ROI) Residual Income (Loss)
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