Increasing Residual Income over Time (LO 2, 4,5)
Prepare a table similar to Exhibit 13-3, which focuses on residual income. Use a 10percent rate to compute the imputed interest charge. The table should show the residual income on the investment during each year in its five-year life. Assume the same income before depreciation and the same depreciation schedule as shown in Exhibit 13-3.
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