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I don't know how to work out these answers. Thanks! 1. The CEO of NSP Ltd currently has a ROI of 15% and residual income

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I don't know how to work out these answers.

Thanks!

1. The CEO of NSP Ltd currently has a ROI of 15% and residual income of $35,000 for Net operating income of $75,000 and average operating assets of $500,000. The CEO of NSP Ltd considers investing in a project X that generates Net Operating Income of $50,000 but requires purchasing additional operating assets of $500,000. The required rate of return is 7%. What is the the new ROI for the whole of NSP Ltd (both projects) based on the information above. 10% Correct answers: 12.5% 2. The CEO of NSP Ltd currently has a ROI of 15% and residual income of $35,000 for Net operating income of $75,000 and average operating assets of $500,000. The CEO of NSP Ltd considers investing in a project X that generates Net Operating Income of $50,000 but requires purchasing additional operating assets of $500,000. The required rate of return is 7%. Calculate the new residual income for the whole of NSP Ltd (both projects) based on the information above. $15,000 Correct answers: $50,000

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