Question: 5 6 7 Chapter 11: Applying Excel Data Sales $10,000,000 Net operating income $700,000 Average operating assets $2,000,000 Minumum required rate of return 24% Chapter

5 6 7 Chapter 11: Applying Excel Data Sales $10,000,000 Net operating income $700,000 Average operating assets $2,000,000 Minumum required rate of return 24%

Chapter 11: Applying Excel

Data
Sales	$10,000,000
Net operating income	$700,000
Average operating assets	$2,000,000
Minumum required rate of return	24%

If your formulas are correct, you should get the correct answers to the following questions.

a. What is the ROI?

b. What is the residual income? (Negative amount should be indicated by a minus sign.)

c. Why is the residual income positive?

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