FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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QUESTION 30

  1.  

    Management is trying to determine which would be the best choice of the following   investment opportunities:

    Data of investment choices:

    3

    Sales

    $6,000,000

    Operating income

         300,000

    Average operating assets

      3,000,000

     

    Required:  Compute the Residual Income assuming a minimum required rate of return of 8%.

     

       

    $66,000

       

    $75,000

       

    $60,000

       

    $70,000

     

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