The manager can invest in an additional project that would

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Reference no: EM13597059

The manager of a stock division projects the following for the next year:

Sales:$185000
Operating Income: $60000
Operating Assets: $375000

The manager can invest in an additional project that would require a $40000 investment in additional assets and would generate $6000 in additional income. The company's minimum rate of return is 14%. What is the residual income for the stock division with adding the additional project?

Reference no: EM13597059

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