Question: Top management is trying to determine which would be the best choice of the following investment opportunities: Data of investment choices: 3 Sales $6,000,000 Operating

Top management is trying to determine which would be the best choice of the following investment opportunities:

Data of investment choices:

3

Sales

$6,000,000

Operating income

360,000

Average operating assets

3,000,000

Required: Compute the Return on investment

Required: Compute the Residual Incomeassuming a minimum required rate of return of 8%.

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