American InterContinental University Income Statement and Cost of Capital Questions

I’m working on a accounting writing question and need an explanation and answer to help me learn.

-What is an income statement and why is it used?
Why would you compare from one year to the next?

-Was the decision to invest additional assets in the company successful? Explain.

-Assuming an 8% cost of capital, calculate the residual income for each year. Explain how this compares to your findings in the previous question.

-Based on the
increase/decrease of the investment does it appear the investment was successful?

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