Question
One of Lex Company's investment center has a residual income of P55000 at a required return of 15%. An investment opportunity equal to 15% of
One of Lex Company's investment center has a residual income of P55000 at a required return of 15%. An investment opportunity equal to 15% of the current value of assets would increase the residual income to P85000. The ROI after the additional investment is 17%. Required:
a. The amount of additional investment
b. Net income of the investment center before the additional investment
c. ROI of the investment center before the additional investment
d. The total assets of the investment center after the additional investment
(Round off peso values to TWO Decimal places and the PERCENTAGE amount in four decimal places, include the "%" sign in your answer. input amounts like this: 100,000.00 for peso amounts, and 21.34% for percentage answers) - 21.34% is already four decimal places (0.2134 when converted to decimal)
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