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hi please answer ASAP. will upvote. thank you! Question 2: Compare ROI and Residual Income (5 marks) 1 2 Northern Pride Inc. has three departments:
hi please answer ASAP. will upvote. thank you!
Question 2: Compare ROI and Residual Income (5 marks) 1 2 Northern Pride Inc. has three departments: X, Y and Z. Each department manager has been presented with a new investment opportunity that promises a 21% return on investment (ROI). The company has a minimum required return 3 of 15%. ROI for the Residual Department year just Income for ended the Year just 4 Ended 5 16% $ 20,000 6 Y 21% $ 5,000 7 Z +2% $ 50,000 B Which department(s) are likely to accept or reject the opportunity if their performance is measured by (3 marks): 1. ROI? 2. Residual income? 1. Evaluated 2.Evaluated based on based on Department ROI Residual Income Y z G 3 D 13 19 3. Why will the departments acept or reject if they are evaluated based on ROIT Explain your answer in a way that a non-accountant can understand. (1 mark) 15 16 4. Why will the departments accept or reject if they are evaluted based on Residual Income? 17 Explain your answer in a way that a non-accountant can understand. (1 mark) 18 19 20 END OF QUESTION 2 21 22 23 24 25 26 Step by Step Solution
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