Reference no: EM131211363
The Western Division of Claremont Company had net operating income of $154,000 and average invested assets of $563,000. Claremont has a required rate of return of 14.75 percent. Western has an opportunity to increase operating income by $49,000 with a $96,000 investment in assets.
Compute Western Division’s return on investment and residual income currently and if it undertakes the project. (Round "ROI" answer to 2 decimal places.)
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: The Western Division of Claremont Company had net operating income of $154,000 and average invested assets of $563,000. Claremont has a required rate of return of 14.75 percent. Compute Western Division’s return on investment and residual income curr..
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