Multiple Choice
Durango Corporation's Midwestern region operates as an investment center.Rich Ruhlman, the division's manager, has set a 15% required minimum rate of return.Ruhlman is considering investing in computerized manufacturing equipment with a cost of $220,000.The equipment is expected to generate $65,000 in additional operating income.What is the equipment's residual income?
A) $65,000
B) $33,000
C) $32,000
D) None of these answer choices are correct
Correct Answer:
Verified
Correct Answer:
Verified
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