Question
1. (a) Greg's company is considering to acquire machine, costing $1595000 with an expected generation income of $292300. If the required minimum rate of return
1. (a) Greg's company is considering to acquire machine, costing $1595000 with an expected generation income of $292300. If the required minimum rate of return is 19%, then the companys residual income is $ ________________.
(b) Bablus Bakerys most recent data related to 2020 appeared as below: Sales Revenues ($) 5157000 Net Operating Income ($) 1019000 Assets 1 Jan 2020 ($) 2834000 Assets 31 Dec 2020 ($) 2932000 The Bablu companys margin is _________ %.
(c) The Bablu companys turnover is _________ times.
(d) The Bablu companys ROI is _________ %.
(e) Is it right to reward managers only based on ROI? justify the answer.
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