Find what would be the company roi in the scenario

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Reference no: EM132621603

Prime Source Company provides business to business service on the internet. Data concerning the most recent year appear below:

Sales $ 8,000,000

Net Operating Income $ 800,000

Average operating Assets $ 3,300,000

Required Help:

Consider each question below independently. Carry out all computation to two decimal places.

Problem 1. Compute the company's Return on Investment (ROI)

Problem 2. The company founder is convinced that sales will increase next year by 160% and that net operating income will increase by 400%, with no increase in average operating assets. What would be the company's ROI?

Problem 3. The CFO of the company believes a more realistic scenario would be a $2 million increase in sales, requiring an $900,000 increase in average operating asset, with the resulting $270,000 increase in net operating income. what would be the company's ROI in this scenario?

Reference no: EM132621603

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