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A. The following information relates to investment opportunities available to Tumaini Ltd Additional Information 1. The company currently has profits of Sh.1, 250,000 and investments
A. The following information relates to investment opportunities available to Tumaini Ltd Additional Information 1. The company currently has profits of Sh.1, 250,000 and investments of Sh.5, 000,000 2. The minimum required rate of return of the company is 20% 3. The Company will only invest in projects that will improve on the current performance Required I. The return on investment (ROI) and the residual Income (RI) for each of the investment opportunities II. Based on the performance measures above, rank the investment opportunities in their order of preference. Comment on the project(s) that the company should invest in (Hint: select the project(s) that will maximize the final profitability)
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