Ino Pharmaceuticals is evaluating its Vioxx. division, an investment center. The division has a $68,000 controllable margin and $450,000 of sales. How much will Ino's average operating assets be when its return on investment is 10%?
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- Golden 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.) What is the profit margin? What is the investment turnover? What is the return on investment?Golden 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).Merck Pharmaceuticals is evaluating its Vioxx division, an investment center. The division has a $45,000 controllable margin and $300,000 of sales. How much will Merck's average operating assets be when its return on investment is 10%? a. $450,000 b. $495,000 c. $300,000 d. $255,000
- Please give me answerGolden 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 residual income? Part B: Show calcualtions on how you got answerAns.
- Salsa Company is considering an investment in technology to improve its operations. The investment costs $241,000 and will yield the following net cash flows. Management requires a 9% return on investments. (PV of $1. FV of $1. PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Year 1 2 3 4 5 Required: 1. Determine the payback period for this investment. 2. Determine the break-even time for this investment. Net cash Flow $ 47,900 52,500 75,400 94,100 126,100 3. Determine the net present value for this investment. 4. Should management invest in this project based on net present value? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Year Determine the payback period for this investment. Note: Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place. Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Payback period= Net Cash Flows $ Required 4 (241,000) 47,900 52,500…Can you help me understand how to find the solutionSuperior Dlvision of the Monroe Company has an opportunity to invest in a new project. The project will yield an incremental operating Income of $73,700 on average invested assets of $$907,000. Superior Division currently has operating income of $432,000 on average Invested assets of $4,332,000. Monroe Company has a 7.7% hurdle rate for new projects. a. What is Superior Division's ROI before making an investment in the project? (Round your answer to 2 decimal places.) Retum on Investment b. What is Superior Division's residual income before making an investment in the project? Residual Income c. What is Superior Division's ROI after making the investment in the project? (Round your answer to 2 decimal places.) Retum on Investment
- Home Innovations is evaluating a new product design. The estimated receipts and disbursements associated with the new product are shown below. MARR is 10%/yr. Solve, a. What is the external rate of return of this investment? b. What is the decision rule for judging the attractiveness of investments based on external rate of return? c. Should Home Innovations pursue this new product?Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $4.97 million. The product is expected to generate profits of $1.15 million per year for 10 years. The company will have to provide product support expected to cost $95,000 per year in perpetuity. Assume all profits and expenses occur at the end of the year. a. What is the NPV of this investment if the cost of capital is 6.1%? Should the firm undertake the project? Repeat the analysis for discount rates of 1.2% and 16.5%, respectively. b. What is the IRR of this investment opportunity? c. What does the IRR rule indicate about this investment?Your division is considering two investment projects, each of which requires an up-front expenditure of 25 million. You estimate that the cost of capital is 10% and that the investments will produce the following after-tax cash flows (in millions of dollars): a. What is the regular payback period for each of the projects? b. What is the discounted payback period for each of the projects? c. If the two projects are independent and the cost of capital is 10%, which project or projects should the firm undertake? d. If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake? e. If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake? f. What is the crossover rate? g. If the cost of capital is 10%, what is the modified IRR (MIRR) of each project?