Question: Needing help with question 5 and a double check for 3 & 4. Questions 3-5 refar to the following: The Upholstery Division at Robinson's Fumiture
Questions 3-5 refar to the following: The Upholstery Division at Robinson's Fumiture recorded operating data as follows for the past year: 3. For the past year, the retum on investment was: a. 5% b. 15% c. 30% d. 25% 4. The residual income for the Upholstery Division would be: a. $6,000 c. 522,000 b. 512,000 d. unknown given the limited data available. 5. Assume that the Upholstery Division has the opportunity to invest in a projoct that will cost 570,000 and will yicld annual net income of $14,000. Which of the two measures-ROI or Residual Incomo-would be increased if Jenkins made this investment? a only ROI would increase b. only Residual Income would increase c. both ROI and Residual Income would increase d. neither ROI nor Residual Income would inerease
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