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please show work thank you so much Required information The Foundational 15 (Static) [LO10-1, LO10-2] [The following information applies to the questions displayed below.] Westerville
please show work thank you so much
Required information The Foundational 15 (Static) [LO10-1, LO10-2] [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: The company's minimum required rate of return is 15%. 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 11. What is last year's residual income? 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? 14. If Westerville's chief executive officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? Yes No 15-a. Assume that the contribution margin ratio of the investment opportunity was 50% instead of 60%. If Westerville's chief executive officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? Yes No 15-b. Would the owners of the company want her to pursue the investment opportunity? Yes NoStep by Step Solution
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