User Account

All Pages

Would be best interests of the company to make investment

Assignment Help Financial Accounting
Reference no: EM132600358

Evaluation of Decentralized Organizations

The Clipper Corporation had net operating income of $380,000 and average operating assets of $2,000,000. The corporation requires a return on investment of 18%.

Required:

Question 1: Calculate the company's return on investment (ROI) and residual income (RI).

Question 2: Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. Would it be in the best interests of the company to make this investment?

Question 3: Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a return on investment of 20% and its manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment?

Question 41: Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a residual income of $50,000 and its manager is evaluated based on the division's residual income, will the division manager be inclined to request funds to make this investment?

Reference no: EM132600358

Questions Cloud

How effective is the visualization : How effective is the visualization? Why? Does the example reveal the tool used ( PowerBI, R, Tableau, Qlikview....?
Find what is bimoli position in the company : If the Bimoli company, What is Bimoli's position in the company? Is Bimoli part of the Cost Center or Revenue Center or Investment Center?
Can bimoli sell the oil to outside customers : If the Bimoli company is only allowed to supply oil to Indomie and sell it only at production costs. Can Bimoli sell its oil to outside customers?
Implementing background tasks in android application : Discuss the best practices for implementing background tasks in an Android application.
Would be best interests of the company to make investment : A project that will generate annual net operating income of $12,950. Would it be in the best interests of the company to make this investment?
Prepare the journal entry to adjust the investment : On that date, the Accumulated OCI account was at its proper balance. Prepare the 12/31/18 journal entry to adjust the investment to fair value
Design access system : If you were going to design an access system that would control people getting into your favorite or most valued items
Calculate the unit cost of each product use firm current : Use the firm's current costing system to calculate the unit cost of each product. Use the activity-based cost system to calculate the unit cost of each product.
Describe some expatriate and repatriate policies : Describe some expatriate and repatriate policies practiced in MNE's. As a consultant provide your opinions on their validity. 8 references including textbook.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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