User Account

All Pages

Calculate roi and residual income for original investment

Assignment Help Managerial Accounting
Reference no: EM132591116

China Group has a division with capital employed of $10 million that currently earns an ROI of 15% per year. It can make an additional investment of $2 million for a five-year life, with no scrap value. The average net profit from this investment would be $280,000 per annum after depreciation. The division's cost of capital is 9%.

Question 1. Calculate the ROI and residual income for the following:

a. Original investment

b. Additional investment

c. Total new level of investment

Reference no: EM132591116

Questions Cloud

Structures of the male reproductive system : Label the indicated structures of the male reproductive system?
Discuss the two examples of the budgets systems : Budget enables better cost control within firms", discuss the previous statement with giving two examples of the main alternative budgets systems
Why the beetle is not harmed by the chemicals : This Bombardier Beetle is spraying a boiling hot liquid that contains irritating chemicals, used as a defense mechanism against its enemies (WHAT?! SO COOL!)
Propose a hypothesis to account for the ability : Female silkworm moths attract males by emitting chemical signals that spread through the air. A male hundreds of meters away
Calculate roi and residual income for original investment : Calculate the ROI and residual income for Original investment. The average net profit from this investment would be $280,000
What are excited electrons : 1) What are excited electrons? what is different about the electrons that get excited at antenna pigments versus at the reaction center?
Calculate the direct materials purchase-price variance : Balt Company maintains a standard cost system; Calculate the direct materials purchase-price variance for the period, rounded to the nearest dollar
Which project would you recommend the company accept : Which project would you recommend the company accept? Compute the net present value of Project X. Compute the net present value of Project Y.
Explain what is human immunodeficiency virus : Explain what is human immunodeficiency virus (HIV)

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd