The residual income of the new project


A company's current net operating income is $26,000 and its average operating assets are $148,000. The company's required rate of return is 13%. A new project being considered would require an investment of $21,100 and would generate annual net operating income of $4,000. What is the residual income of the new project?

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Accounting Basics: The residual income of the new project
Reference No:- TGS0702302

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