Hubbard Division of the Market Company has an opportunity to invest in a new project....
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Hubbard Division of the Market Company has an opportunity to invest in a new project. The project will yield an incremental operating income of $40,750 on average invested assets of $455,000. Hubbard currently has operating income of $200,000 on average invested assets of $2,015,000. Market Company requires a 5% rate of return on new projects. a. What is Hubbards ROI before making an investment in the project? (Round your answer to 2 decimal places.)b. What is Hubbards residual income before making an investment in the project? c. What is Hubbards ROI after making the investment in the project? (Round your answerto 2 decimal places.)d. What is Hubbards residual income after making the investment in the project?
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