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What is the residual income

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Q1. Jackson Corp. has an operating income of $103,000, average invested assets of $606,000, and a cost of capital of 7%. What is the residual income?

a. $42,420

b. $103,000

c. $60,580

d. $172 ,247

Q2. Projects that involve a choice among competing alternatives, where selection of one project implies rejection of all the other alternatives, are:

a. mutually exclusive projects.

b. screening projects.

c. preference projects.

d. independent projects.

Reference no: EM132613288

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