Question: A divisional manager at Dean Co. is considering implementing a new project in the coming year that would have a cost of $889391 and would
A divisional manager at Dean Co. is considering implementing a new project in the coming year that would have a cost of $889391 and would add $110376 to the division's net income each year. The manager's projected results for the coming year, before consideration of the project proposal, are as follows: Income $697815 Assets 1778114 Assuming corporate has a minimum required ROI of 8%, what would be the increase (decrease) in residual income if the manager accepts the project? Select one: a. $594791 O b. $-39225 O c. $110376 d. $39225 Check
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