Problem related to performance evaluation

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Rae Corporation has $100,000,000 in invested capital. The income (NOPAT) is $12,000,000. Sales were $240,000,000. The required return is 10%.

1. Calculate the ROI for Rae Corporation.

2. Calculate the profit margin for Rae Corporation.

3. Calculate the investment turnover for Rae Corporation.

4. Calculate the residual income for Rae Corporation.

5. Comment on the company's performance.

Reference no: EM13143317

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