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    Performance Measures for a Division

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    Calculate the following performance measures for 20x1 for the Fairmont Division
    a. Return on investment (ROI)
    b. Residual income
    2. Would the management of Fairmont Division have been more likely to accept the investment opportunity it had in 20x1 if residual income were used as a performance measure instead of ROI?


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    Solution Summary

    Solution attaches a .doc file showing how to find ROI, residual income, etc. for a given data table.