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What is the residual income of a after the expansion

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Reference no: EM132932595

Question - Capitol Investments has two investment centers. The company's required rate of return is 15%. Planned operating results for 2022 are as follows:

DIVISION OPERATING INCOME INVESTMENT

A 15,000,000 100,000,000

B 25,000,000 125,000,000

The company is planning an expansion, which will require each division to increase its investments by P25,000,000 and its income by P4,500,000.

Required -

-Write ROI as percentage. E.g. 25.00 or 18.50

-Write residual income as whole number. No need to write peso sign and centavos.

-What is the return on investment for A before the expansion?

-What is the return on investment for Before the expansion?

-What is the residual income of A before the expansion?

-What is the residual income of B before the expansion?

-What is the return on investment of A after the expansion?(Round to 1 decimal place)

-What is the return on investment of B after the expansion?(Round to 1 decimal place)

-What is the residual income of A after the expansion?

-What is the residual income of B after the expansion?

Reference no: EM132932595

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