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The income from operations and amount of invested assets in each division of NOVEMBER INDUSTRIES...

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Accounting

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The income from operations and amount of invested assets in each division of NOVEMBER INDUSTRIES are as follows: NOW ASSUME that NOVEMBER management is evaluating performance using Residual Income. 4) What is the residual income for each division before this potential project? 5) Which division is most profitable on this basis? What does this mean, in words? Is it really right to compare these divisions using the RI method? WHY or WHY NOT? 6) Assume that the same project becomes available from \#3 above. Does the fact that we are now using Residual Income change your answer to 3(b) above? Yes or no? Explain. The income from operations and amount of invested assets in each division of NOVEMBER INDUSTRIES are as follows: NOW ASSUME that NOVEMBER management is evaluating performance using Residual Income. 4) What is the residual income for each division before this potential project? 5) Which division is most profitable on this basis? What does this mean, in words? Is it really right to compare these divisions using the RI method? WHY or WHY NOT? 6) Assume that the same project becomes available from \#3 above. Does the fact that we are now using Residual Income change your answer to 3(b) above? Yes or no? Explain

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