Calculate the residual income of the new project


A company's current net operating income is $32,480 and its average operating assets are $112,000. The company's required rate of return is 16%. A new project being considered would require an investment of $31,000 and would generate annual net operating income of $8,680. What is the residual income of the new project?

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Accounting Basics: Calculate the residual income of the new project
Reference No:- TGS0688066

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