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I just need help calculating the last 3 blanks on the Excel sheet. pls show all calculations Copeland Company is an investment center and an
I just need help calculating the last 3 blanks on the Excel sheet. pls show all calculations
Copeland Company is an investment center and an operating segment of Bobcat International Corporation. Copeland Company is currently earning an ROI of 16% on average operating assets of $15,000,000 as of January 1, 2015. On January 1, 2015 the company has the opportunity to make an investmentwhichwillcostsa000.000and which they believe will yield a 12.5% return (ROI). Bobcat International Corporation expects its investment centers to earn at least 10% on all new investments REQUIRED: Calculate the operating income Copeland Company is currently earning. Calculate the operating income the investment is expected to earn. Calculate the average operating assets Copeland Company will have at yeacend if they make the investment Calculate the operating income Copeland Company will have if they make the investment. What will Copeland Company's ROI be if they make the investment? If the CEO of Copeland Company is evaluated based on ROI will Copeland Company make the investment? Calculate the Residual Income for Copeland Company before making the investment. Calculate the Residual Income for Copeland Company assuming that they make the investment. If the CEO of Copeland Company is evaluated based on Residual Income will Copeland Company make the investment? 1. 2. 3. 4. 5. 6. 7. 8. 9. ETURN ON INVESTMEN Operating Income Average Operating Assets Before Investment Investment After Investment $2,400,000 $500,000 $2,900,000 $15,000,000 $4,000,000 $19,000,000 Return on Investment 16.00%, 12.50% 15.26% Assuming that Copeland Company is evaluated based on ROI only, will Copeland Company make the Investment? RESIDUAL INCOME Corporate Desired ROl Operating Income Desired Operating Income 10.00% Before Investment After Investment $2,400,000 $1,500,000 $900,000Step by Step Solution
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