ROV and Residual Income: Impact of a New investment The Mustang Division of Detroik Motors...
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ROV and Residual Income: Impact of a New investment The Mustang Division of Detroik Motors had an operating income of 5800,000 and net assets of $4,000,000. Detrout Motors has a target rate of return of 16 percent. (a) Compute the return on investment, (Round your answer to three decimal places) x (b) Compute the residual income. (c) The Mustang Divisian has an opportunity to increase operating incoche by $200,000 with an $750,000 investment in assets
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