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8. The following investment opportunities are available to an investment center manager: Initial Investment Annual Project Earnings $ 110,000 50,000 35,000 10,000 S 600,000 200,000

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8. The following investment opportunities are available to an investment center manager: Initial Investment Annual Project Earnings $ 110,000 50,000 35,000 10,000 S 600,000 200,000 400,000 700,000 What is the ROI for A, B, C&D? If you are making a 10% return on investment, which project(s) would you choose? which project(s) would you choose if you cost of capital was 20%? What is the residual income for projects A, B, C & D? If you had to take two out of the four, which ones would you choose? a. b. d. e

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