Question 2. A) Select the best method of construction using Return on Investment ROI (Rate of Return) method, the data of both equipment are shown the table below, B) Compare the effect of decrease in revenues of 10% on the rate of return for method II (calculate the % of change in ROI). Method I Method II Initial cost (OR) C1 C2 Annual revenues (OR/yr) R R O&M annual cost ((OR/yr) 15200 16500 Salvage value (OR) 2000 1500 Useful life (Years) 8. 10

Question 2. A) Select the best method of construction using Return on Investment ROI (Rate of Return) method, the data of both equipment are shown the table below, B) Compare the effect of decrease in revenues of 10% on the rate of return for method II (calculate the % of change in ROI). Method I Method II Initial cost (OR) C1 C2 Annual revenues (OR/yr) R R O&M annual cost ((OR/yr) 15200 16500 Salvage value (OR) 2000 1500 Useful life (Years) 8. 10

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Vaibhav
Answer asap
Brief Exercise 9-4 (Algo) Calculating return on investment LO 9-4 The following financial information pertains to Smith Architects: Net income Items Beginning assets Ending assets Year 4 $ 241,000 782,000 982,000 a-1. Return on investment Year 3 a-2. Return on investment Year 4 b. The company performed better in Year 3 $ 221,000 706,000 786,000 Required: a. Calculate Smith Architects return on investment for Year 3 and Year 4. Note: Round percentages to 1 decimal place. b. Did the company perform better in Year 3 or Year 4? % %
eBook Determining missing items in return on investment and residual income computations The following table presents various rates of return on investment and residual incomes: InvestedAssets OperatingIncome Return onInvestment MinimumRate ofReturn MinimumAcceptableOperatingIncome ResidualIncome $980,000 $215,600 (a) 12% (b) (c) 520,000 (d) (e) (f) $62,400 $20,800 320,000 (g) 14% (h) 35,200 (i) 240,000 50,400 (j) 12% (k) (l) Determine the missing items, identifying each item by the appropriate letter. Round dollar amounts to the nearest whole number. Answer a. fill in the blank 1 % b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4 e. fill in the blank 5 % f. fill in the blank 6 % g. $fill in the blank 7 h. fill in the blank 8 % i. $fill in the blank 9 j. fill in the blank 10 % k. $fill in the blank 11 l. $fill in the blank 12
Do not give answer in image
Using the following data, estimate the new Return on Investment if there is a 11% decrease in the average operating assets - with the new average operating assets as the base. Sales $2,565,862 Contribution margin 48% Controllable fixed costs 293,294 Average operating assets $4,671,197 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
Subject :- Account I need all question please
Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Electronics Income $ 3,114,000 2,261,000 Average Assets $ 17,300,000 13,300,000 Sporting goods Sales $ 41,520,000 18,088,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient…
Pa help po. Salamat
Do not give image format