NUBD is evaluating its X Division, an investment center. The division has a P50,000 controllable margin and P300,000 of sales. How much will NUBD’s average operating assets be when its return on investment is 20%?
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NUBD is evaluating its X Division, an investment center. The division has a P50,000 controllable margin and P300,000 of sales. How much will NUBD’s average operating assets be when its
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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).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 residual income? Part B: Show calcualtions on how you got answer
- Roy Toy, a division of Fun Corp. has a net operating income of $60000 and average operating assets of $300000. The company's required rate of return is 15%. Would the company want the manager of the Roy Toy division to make an investment of $100000 that would generate an additional net operating income of $18000 per year?a. Yesb. NoThe manager of a small firm wants to know which among the three different projects should the company enter into. Details of the three projects are as follows: JOJO GINA MARIA LORINDA KANOR Initial investment P 120,000 P 125,000 P 180,000 P160,000 P35,000 Net present value 25,000 24,000 45,000 35,000 10,000 Internal rate of return 10% 15% 12% 8% 9% Profitability index 1.21 1.19 1.25 1.22 1.29 If the management has a budget of P500,000 only, which projects would be undertaken? a. Jojo, Gina, Lorinda, and Kanor b. Gina, Maria, Lorinda, and Kanor c. Jojo, Maria, Lorinda, and Kanor d. Jojo, Gina, Maria, and KanorIf 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?
- Ans.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…Superior 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
- Sunland Division's operating results include: controllable margin of $280000, sales totaling $1400000, and average operating assets of $800000. Sunland is considering a project with sales of $100000, expenses of $84000, and an investment of average operating assets of $200000. Sunland's required rate of return is 10%. Should Sunland accept this project? O Yes, ROI will drop by 6.6% which is still above the minimum required rate of return. O Yes, ROI still exceeds the cost of capital. O No, the return is less than the required rate of 10%. O No, ROI will decrease to 8%. Save for Later O i 20 2 Attempts: 0 of 1 used Submit AnswerThe current ROI for our company as a whole is 12 percent. Our minimum required rate of return on all investments is 10 percent. One of our divisions has total assets of $4,000,000 with operating income of $800,000. We are considering the purchase of a small company that will require an investment of $800,000, and the synergies between the two companies will increase this division's operating income by $90,000. Q1) What is the ROI for this division before and after the proposed purchase of this small company? Please show all relevant calculations. Q2) What is the residual income for the division before and after the proposed purchase the small company? Q3) If my annual bonus, as head of this division is based on increasing ROI, will I have an incentive to NOT purchase this small company?A division with capital employed of sh.400, 000 currently earns an ROI of 22%. It can make an additional investment of sh.50, 000 for a five-year life with nil residual value. The average net profit from this investment would be sh.12, 000 after depreciation. The division’s cost of capital is 14%. What are the residual incomes before and after the investment? Select one: A. Sh. 37,000; sh. 32,000 B. Sh. 32,000; sh. 37,000 C. Sh. 47,000, sh. 32,000 D. Sh. 47,000; sh. 37,000
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