What is the division return on investment or roi

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Reference no: EM132649660

Far Sight is a division of a major corporation. The following data are for the latest year of operations:

Sales                                                           $24,480,000

Net operating Income                                      $1,738,080

Average operating assets                                $6,000,000

The company's minimum required rate of return      16%

Required:

Question a. What is the division's return on investment (ROI)?

 

Question b. What is the division's residual income?

Reference no: EM132649660

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