Question: Req 1 to 3 Req 4 Req 5 Req 6 A to 6 C 6 . Suppose that the company's minimum required rate of return

Req 1 to 3
Req 4
Req 5
Req 6 A to 6C
6. Suppose that the company's minimum required rate of return on operating assets is 13% and that performance is evaluated using residual income.
a. Compute the Office Products Division's residual income for this year.
b. Compute the Office Products Division's residual income for the new product line by itself.
c. Compute the Office Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line.
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\table[[1. Residual income for this year],[2. Residual income for the new product line by itself],[3. Residial inrnme for next vear]]
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 Req 1 to 3 Req 4 Req 5 Req 6 A

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