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Author Question: Durango Corporation's Midwestern region operates as an investment center. Rich Ruhlman, the ... (Read 56 times)

desireelg_7

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on: Feb 5, 2023

Question 1

Jumbo Industries is considering the purchase of equipment costing $80,000. The company has a 12% required minimum rate of return. The equipment is expected to generate $20,000 in additional operating income. Jumbo's tax rate is 25% and its weighted-average cost of capital is 12%. What is the equipment's EVA?
◦ $9,600
◦ $7,200
◦ $2,400
◦ $5,400

Question 2

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?
◦ $65,000
◦ $32,000
◦ $33,000
◦ None of these answer choices are correct
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by desireelg_7 on Feb 5, 2023

bleep bloop

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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desireelg_7

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review

bdobbins

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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