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Business, 05.05.2020 12:56 jaylanmahone223

Gable Ceramics, a division of Alderman Corporation, has an operating income of $ 64 comma 000 and total assets of $ 400 comma 000. The required rate of return for the company is 11%. The company is evaluating whether it should use return on investment (ROI) or residual income (RI) as a measurement of performance for its division managers. The manager of Gable Ceramics has the opportunity to undertake a new project that will require an investment of $ 100 comma 000. This investment would earn $ 14 comma 000 for the company.

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Gable Ceramics, a division of Alderman Corporation, has an operating income of $ 64 comma 000 and to...
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