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4. Click Submit to complete this assessment Question 1 of 1 Question 1 5 points Save Answer Zain Company provides business to business services on

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4. Click Submit to complete this assessment Question 1 of 1 Question 1 5 points Save Answer Zain Company provides business to business services on the internet. Data concerning the most recent year appear below Sales $4,500,000 Net Operating Income $150.000 Average Operating Assets $750,000 Required Return on Investment 16% Required: Consider each question below independently. Carry out all computation to two decimal places a Compute the Company's Margin, Turnover. Return on Investment (ROI) and Residual income (RI) b The company management is considering an additional investment of $40,000 in a project that will generate extra annual net operating income of $8.950. Would the additional investment to be in the best interests of the company to make this investment? Why? c The entrepreneur who founded the company is convinced that sales will increase by 40% and the net operating income will increase 80% with no Increase in average operating assets. Furthermore required return on investments decrease from 16% to 14% What would be the company's ROI and Residual Income (RI)? d. The chief financial officer of the company believes a more realistic scenario would be 800.000 increases in sales, requiring a 120.000 Increase in average operating assets, with a resulting 100% increase in net operating income What would be the company's ROI and RI a in this scenario? For the toolbar, press ALT-F10(PC) or ALT-FN+F10 (Mac)

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