What is the residual income of the new project


A company's current net operating income is $22,000 and its average operating assets are $87,000. The company's required rate of return is 24%. A new project being considered would require an investment of $17,000 and would generate annual net operating income of $4,380. What is the residual income of the new project?

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Accounting Basics: What is the residual income of the new project
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