Question
Investment required $ 30 ,000,000 Expected annual project revenue $ 36 , 0 00,000 Expected annual project expenses $ 31,200 ,000 Required rate of return
Investment required | $30,000,000 |
Expected annual project revenue | $36,000,000 |
Expected annual project expenses | $31,200,000 |
Required rate of return | 14% |
Current division return on investment | 19% |
a) Calculate the projects return on investment.
b) Based solely on ROI, is this project in the firms best interests? Why or why not?
c) Is this project in the division managers best interests? Why or why not?
d) Perform DuPont Analysis on this project.
e) What is the projects residual income?
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No Nonsense Project Auditing A Practical Guide For The PMO
Authors: Lisa Nash
1st Edition
0993403522, 978-0993403521
