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Cody Corporation's Southern Region Operates as an Investment Center

Question 137

Multiple Choice

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?


A) 12%
B) 20%
C) 32%
D) None of these ans choices are correct

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