Business, 12.08.2020 08:01 frankgore7836
The Clipper Corporation had net operating income of $380,000 and average operating assets of $2,000,000. The corporation requires a return on investment of 18%.
Required ( support your answers with explanations):
a. Calculate the company's return on investment (ROI) and residual income (RI).
b. Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a return on investment of 20% and its manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment?(Note: the decision model for the division manager is self-interested i. e. centers on the decision's effect on his evaluation criteria)
c. Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a residual income of $50,000 and its manager is evaluated based on the division's residual income, will the division manager be inclined to request funds to make this investment?(Note: the decision model for the division manager is self-interested i. e. centers on the effect on his evaluation criteria)
Answers: 1
Business, 21.06.2019 16:00
Abigail spent $100 on a new edition of the personal finance textbook rather than $75 for a used copy. the additional cost for the new copy is called the
Answers: 1
Business, 22.06.2019 06:30
Individual consumers belong to which step of choosing a target market? possible customers competition demographics communication
Answers: 2
Business, 22.06.2019 16:00
In microeconomics, the point at which supply and demand meet is called the blank price
Answers: 3
Business, 22.06.2019 17:10
Calculate riverside’s financial ratios for 2014. assume that riverside had $1,000,000 in lease payments and $1,400,000 in debt principal repayments in 2014. (hint: use the book discussion to identify the applicable ratios.)
Answers: 3
The Clipper Corporation had net operating income of $380,000 and average operating assets of $2,000,...
Biology, 05.06.2021 22:30
Mathematics, 05.06.2021 22:30
Mathematics, 05.06.2021 22:30
Mathematics, 05.06.2021 22:30
English, 05.06.2021 22:30
Mathematics, 05.06.2021 22:40
History, 05.06.2021 22:40
Chemistry, 05.06.2021 22:40
Mathematics, 05.06.2021 22:40
Mathematics, 05.06.2021 22:40
Chemistry, 05.06.2021 22:40