Calculate ROI and residual income for each of the investment centers listed. (Round to two decimal places.)
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Question:
Calculate ROI and residual income for each of the investment centers listed. (Round to two decimal places.)
Investment Center 1 | Investment Center 2 | |
Operating income | $ 50,000 | $ 70,000 |
Assets invested | 125,000 | 180,000 |
Income taxes | 15,000 | 21,000 |
Cost of capital in dollars | 13,000 | 25,000 |
Desired ROI | 56% | 48% |
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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