Solution-What would be the increase in residual income

What would be the increase in residual income

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Reference no: EM132762025

A divisional manager at Dean Co. is considering implementing a new project in the coming year that would have a cost of $899761 and would add $106405 to the division's net income each year.

The manager's projected results for the coming year, before consideration of the project proposal, are as follows:

Income $715348

Assets 1833631

Problem 1: Assuming corporate has a minimum required ROI of 9%, what would be the increase (decrease) in residual income if the manager accepts the project?

Select one:

a. $106405
b. $-25427
c. $575748
d. $25427

Reference no: EM132762025

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What would be the increase in residual income

Reference no: EM132762025

Reference no: EM132762025

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