Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate...
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Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.51 percent. Selected operating data for the three divisions follow Sales revenue Cost of goods sold Miscellaneous operating expen Average invested assets Peak View Grand $ 344,000 $226,000 $ 310,000 211,000 110,000 193,000 43,000 37,000 30,000 1,290,000 910,000 1,205,000 Required: 1. Compute the return on investment for each division, 2. Compute the residual income for each division Complete this question by entering your answers in the tabs below. Required i Required 2 Compute the return on investment for each division (Enter your ROI answers as a percentage rounded to two decimal places, (c., 0.1234 should be entered as 12.34%.)) Peak View Grand Rotum on Investment Maquie Required 2 >
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