If an investment center has generated a controllable margin of Php60,000 and sales of Php300,000, what is the return on investment (in percentage) for the investment center if average operating assets were Php500,000 during the period
Q: e net present value
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A: Given information, Total assets = $500,000Annual sales = $1,200,000Profit margin = 6% or 0.06…
If an investment center has generated a controllable margin of Php60,000 and sales of Php300,000, what is the
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- PT Motor & Cars has data for the project of establishing a factory as follows:- Value of initial investment Rp1.000.000.000,-- The investment period is five years.- Revenue Rp250.000.000 (first year), Rp300.000.000 (second year), Rp300.000.000 (third year),Rp350.000.000 (fourth year) and Rp400.000.000 (fifth year)- Required rate of return for project is 10%Please calculate for Net Present Value (NPV), Discounted Payback Period, Profitability Index and Internal Rate of Return (IRR). Give your analysis whether the project is accept or reject?When calculating Return on Investment (ROI) we take the benefit/cost x 100. Or as we reviewed in class: ROI= (average annual profit/total investment) x 100. So, if I invest in Fall protection for my company at a cost of $10,000, and for the purposes of calculation, you determine if it saves that company 10% of it's fall- related WC claims annually, the annual benefit would be around $3,000 annually, what would you project your ROI to be? (one best answer) 30% 10% $3,000 I don't need to calculate the ROI, because it is required by law.Give correct solution
- The company is in search of resources for a new investment of TL 3,000,000. As a financial manager,a) Find the current weighted average cost of capital according to the resource distribution below.b) Discuss, what kind of financing strategy would you propose for the investment project in question.A company is considering a $166,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow $10,000 $28,000 $55,000 $42,000 $111,000 (a) Compute the net present value of this investment.(b) Should the machinery be purchased?The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows: Warehouse Tracking Technology Year Income fromOperations Net CashFlow Income fromOperations Net CashFlow 1 $44,000 $145,000 $92,000 $232,000 2 44,000 145,000 70,000 196,000 3 44,000 145,000 35,000 138,000 4 44,000 145,000 15,000 94,000 5 44,000 145,000 8,000 65,000 Total $220,000 $725,000 $220,000 $725,000 Each project requires an investment of $440,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683…
- The Western Division of Claremont Company had net operating income of $154,000 and average invested assets of $557,000. Claremont has a required rate of return of 14.75 percent. Western has an opportunity to increase operating income by $48,000 with a $84,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answers to the nearest whole dollar. Return on Investment (ROI) Residual Income (Loss) Current % Proposed ProjectDatabase Systems is considering expansion into a new product line. Assets to support expansion will cost $890,000. It is estimated that Database can generate $1,860,000 in annual sales, with an 13 percent profit margin. What would net income and return on assets (investment) be for the year? (Input your return on assets answer as a percent rounded to 2 decimal places.) Net Income Return on assets 96Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 6,400,000 2,145,000 900,000 QS 22-12 (Algo) Computing return on investment LO A1 Compute return on investment for each investment center. Which center performed the best based on return on investment? Investment Center Average Assets $ 29,600,000 16,500,000 15,200,000 Complete this question by entering your answers in the tabs below. Cameras Phones Computers Performance Return on Investment Based on ROI Compute return on investment for each investment center. (Round your final answer to 1 decimal place.) Average Assets $ 29,600,000 16,500,000 15,200,000 Answer is complete but not entirely correct. Income $ 6,400,000 2,145,000 900,000 Return on Investment 2.2 X % 0.2 X % 5.9 %
- An investment of $5,000 grew to $5,281.25 in nine months. What was the rate of return on the investment?company that makes clutch disks had the cash flows shown below for one department with a MARR of 25%. Calculate the rate of return by using return on invested capital approach with a reinvestment rate of 15% per year. Should the company continue to make clutch disks? Year 0 1 2 3 Cash Flow, $ Ft 500 -600 200 -190Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the profit margin? Part B: What is the investment turnover? Part C: What is the return on investment? Part D: What is the residual income? Part E: Explain each of the calculations you just performed (a-d).
