KYY Inc. has the following data on its 2020 financial statement Total sales 2,000,000 360,000 1,500,000 2,100,000 Profit Beginning total sales Ending total sales A project proposal showed additional investment of 800,000 that would generate 1,000, sales and controllable contribution margin of 120,000. What is the return on investment (ROI) of the project proposal? Should the proposal be ассepted?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
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KYY Inc. has the following data on its 2020 financial statement
Total sales
2,000,000
Profit
360,000
Beginning total sales
Ending total sales
1,500,000
2,100,000
A project proposal showed additional investment of 800,000 that would generate 1,000, sales and controllable
contribution margin of 120,000. What is the return on investment (ROI) of the project proposal? Should the proposal be
accepted?
Transcribed Image Text:KYY Inc. has the following data on its 2020 financial statement Total sales 2,000,000 Profit 360,000 Beginning total sales Ending total sales 1,500,000 2,100,000 A project proposal showed additional investment of 800,000 that would generate 1,000, sales and controllable contribution margin of 120,000. What is the return on investment (ROI) of the project proposal? Should the proposal be accepted?
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