Use the information below to answer the following question(s) .Ruth Cleaning Products manufactures home cleaning products.The company has two divisions, Bleach and Bleach-2.Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures.The following information is provided for the year just ended:
The company is currently using a required rate of return of 15 percent.
-What are Bleach's and Bleach-2's residual incomes, based on current values, respectively?
A) $116,250; $37,500
B) $110,000; $67,500
C) $67,500; $110,000
D) $37,500; $116,250
E) $115,340; $80,000
Correct Answer:
Verified
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