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TeleMedia is a technology firm that reported an operating loss of $15 million in the most recent year (just ended), after R&D expenses of $100 million. If R&D has a 3--year life and the company’s R&D expenses in the last three years have been $30 million (3 years ago), $60 million (2 years ago) and $90 million (last year) respectively, what is the “corrected” operating income that TeleMedia would have reported if R&D had been capitalized?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91588175

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