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The manager of Stock Division projects the following for next year: Sales $185,000 Operating income $77,700 Operating assets $375,000 The manager can invest in an
The manager of Stock Division projects the following for next year: Sales $185,000 Operating income $77,700 Operating assets $375,000 The manager can invest in an additional project that would require $40,000 investment in additional assets and would generate $6,000 of additional income. The company's minimum rate of return is 14%. What is the residual income for Stock Division with the additional project? $40,000 $6,000 $7,900 O $4,200 $25,600
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