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What is the equipment residual income

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Reference no: EM133107859

Question - Ivanhoe Corporation's Midwestern region operates as an investment center. Rich Ruhlman, the division's manager, has set a 15% required minimum rate of return. Ruhlman is considering investing in computerized manufacturing equipment with a cost of $224000. The equipment is expected to generate $65400 in additional operating income. What is the equipment's residual income?

Reference no: EM133107859

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