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The Western Division of Claremont Company had net operating Income of $140,000 and average invested assets of $557,000. Claremont has a required rate of
The Western Division of Claremont Company had net operating Income of $140,000 and average invested assets of $557,000. Claremont has a required rate of return of 14.25 percent. Western has an opportunity to increase operating Income by $41,000 with a $85,000 increase in average invested 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, (l.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answers to the nearest whole dollar.) Return on Investment (ROI), Residual Income (Loss) Current Proposed Project % %
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