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Determine the amount of additional investment

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Reference no: EM133133591

Question - One of Lex Company's investment center has a residual income of P55000 at a required return of 15%. An investment opportunity equal to 15% of the current value of assets would increase the residual income to P85000. The ROI after the additional investment is 17%.

Required -

a. Determine the amount of additional investment.

b. Determine net income of the investment center before the additional investment.

c. Determine ROI of the investment center before the additional investment.

d. Determine the total assets of the investment center after the additional investment.

Reference no: EM133133591

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