Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assignment 8.1 return on investment and investment

Assignment 8.1 Return on Investment and Investment Decisions Leslie Blandings, division manager of Audiotech Inc.,...

60.1K

Verified Solution

Question

Accounting

image
Assignment 8.1 Return on Investment and Investment Decisions Leslie Blandings, division manager of Audiotech Inc., was debating the merits of a new product--a weather radio that would put out a warning if the county in which the listener lived were under a severe thunderstorm or tomado alert. The budgeted Income of the division was $825,000 with operating assets of $5,125,000. The proposed investment would add income of $640,000 and would require an additional investment in equipment of $4,000,000. The minimum required return on investment for the company is 15%. Required: 1. Compute the ROI of the following (round to the nearest whole percent): a. The division if the radio project is not undertaken. b. The radio project alone. c. The division if the radio project is undertaken. 2. Compute the residual income of the following: % % 000 III a. The division if the radio project is not undertaken. b. The radio project alone c. The division of the radio project is undertaken

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students