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Tinsley Plastics manufactures plastic bottles used for beverages and household cleaners. The average net book value (NBV) of assets during the quarter is estimated at
Tinsley Plastics manufactures plastic bottles used for beverages and household cleaners. The average net book value (NBV) of assets during the quarter is estimated at $610,000. If the required rate of return is 15% on average assets and the firm wants to have residual income (RI) of $111,000 for this quarter, what must its profits be?
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