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Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate...

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Accounting

Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.51 percent. Selected operating data for the three divisions follow: Peak View Grand Sales revenue $ 332,000 $ 236,000 $ 314,000 Cost of goods sold 198,000 118,000 199,000 Miscellaneous operating expenses 43,000 35,000 31,000 Average invested assets 1,280,000 880,000 1,035,000 Required: Compute the return on investment for each division. Compute the residual income for each division

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