If invested capital is 150000 and target rate of return on...

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If invested capital is $150000 and target rate of return on investment is 16%, then target annual operating income would be

A. $27,000

B. $26,000

C. $24,000

D. $25,000

Answer: Option C

Target annual operating income = Invested capital × Target rate of return on investment
= $150000 × 16% = $24,000.

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