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bmh12e bmh12e
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4 months ago
Cody Corporation's Southern region operates as an investment center. The division's director is considering investing in machinery which costs of $100,000 and is expected to generate $32,000 in additional operating income. If the residual income for the equipment is $12,000, what is the division's required rate of return?

▸ 12%

▸ 32%

▸ 20%

▸ None of these answer choices are correct
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Managerial Accounting

Managerial Accounting


Edition: 4th
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heathernhullheathernhull
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4 months ago
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20%

$32,000 - ($100,000 × Required Rate of Return) = $12,000; Required rate of return = 20%
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