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Please solve the following (with work), thank you. Exercise 25.10 (Static) City Wide Door ROI and Residual Income (LO25-2, LO25-4) Emily Adams is the manager
Please solve the following (with work), thank you.
Exercise 25.10 (Static) City Wide Door ROI and Residual Income (LO25-2, LO25-4) Emily Adams is the manager of City Wide Door, a company specializing in installing and maintaining garage doors of many types. Her associate, Alyssa, has provided Emily with three proposals for different investments in machinery to help expand the business. The minimum required return on investments for City Wide Door is 18 percent. Initial investment Annual operating return Proposal A $ 70,000 15,400 Proposal B $ 84,000 20,160 Proposal c $ 60,000 15,000 a-1. Calculate the ROI for each proposal? a-2. If Emily uses ROI to evaluate investments, which proposal would be most profitable for the firm? b-1. Calculate the residual income for each proposal? b-2. If Emily uses residual income to evaluate investments, which proposal would be most profitable for the firm? Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req B1 Req B2 Calculate the ROI for each proposal? Proposal B Proposal Proposal A % ROIStep by Step Solution
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