Economic Value Added?

View Policies Show Attempt History Current Attempt in Progress Maria Miller operates a popular summer camp for elementary school children. Projections for the current year are as follows: Sales revenue Operating income Average assets $7,560,000 $664,500 $3.792.000 The camp's weighted average cost of capital is 9%, and Maria requires that all new investments generate a return on investment of at least 13%. The camp's current tax rate is 30%. At last week's advisory board meeting. Maria told the board that she had up to $70,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the board's president presented Maria with the following list of three potential investments to improve the camp facilities. Swimming Playground Pool Incremental operating income $ 1.650 $6,160 Average total assets 15,000 38,500 22.000 Gym $ 3,300 (a) Your answer is partially correct. Calculate the return on investment, residual income, and economic value added for each of the three projects. (Enter negative amounts using either a negative sign preceding the number, e.g. -45 or parentheses, e.g. (45). Round Return on Investment answer to 2 decimal places, eg. 15.25 & all other answers to decimal places, eg. 15 or 15%) Playground Pool Gym 11 96 16 % 15 % $ -300 $ Return on Investment Residual Income Economic Value Added 1155 $ 440 -12345 $ 2100 $ 1400 e Textbook and Media Assistance Used Attempts: 7 of 12 used Submit Answer Save for Later (b) The parts of this question must be completed in order. This part will be wailable when you complete the part above