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1 Question: Evaluating Performance using ROI and Residual Income (9 marks) 2 3 Part A, B and C are independent from one another. 4
1 Question: Evaluating Performance using ROI and Residual Income (9 marks) 2 3 Part A, B and C are independent from one another. 4 5 Part A: Return on Investment (2 marks) 9 7 8 Beach Road Foods calculated the following ROIs for two potential investments. Beach Road's required rate of return is 11%. 9 10 11 12 13 Investment G H ROI 10.5% 12.0% Which investment should Beach Road choose? Explain your answer in a way that a non-accountant can understand. You must use question data to explain. (2 marks)
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