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7--Bita overseas company is working on expansion decision , assume that the company is having...

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Accounting

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7--Bita overseas company is working on expansion decision , assume that the company is having 3 different alternates of investment, to invest in plant A, the cost of initial investment (outflow) is $100000 and the expected returns (inflow ) $ 40000 per year for 4 years that are shown in the table below, OR to invest in plant B , the cost of initial investment (outflow) is $200000 and the expected returns (inflow ) $ 50000 per year for 4 years , OR to invest in plant C, the cost of initial investment (outflow) is $150000 and the expected returns (inflow ) $ 35000 per year for 4 years that are shown in the table below that are shown in the table below.......(3 marks) REQUIRED Which ALTERNATE would the management choose. Giving the following table: Year Plant A Plant B Plant C Investments 100,000 200,000 150,000 1 40 50 35 2 40 50 35 3 40 50 35 40 50 35 4 8-Use the ROI to help an investor who needs to invest in the best dividends ( shares ), the following below are the net profits and capital extracted from these three companies accounting records , .......(3 marks) A B Capital 1000,000 2000,000 6000,000 Profits 100,000 40,000 1500,000 Required Which company is of the best performance based on ROI criteria ? state the reason why

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