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Question 1 3 pts Sales revenue is $1,000. Profit is $56. Gross margin ratio is 13%. Required rate of return is 10% a year. Asset
Question 1 3 pts Sales revenue is $1,000. Profit is $56. Gross margin ratio is 13%. Required rate of return is 10% a year. Asset turnover is 2.5. Current liabilities are $500. Compute return on investment (ROI). 2.8% 11.2% 14% 5.6% 4% Question 2 3 pts You are planning to invest $12,000 in new equipment. The investment will generate cost savings of $8,000 a year for two years, after that the salvage value is zero. The cost of capital is 25% a year. Compute the net present value (NPV). $28.000 ($480) $11,520 $4,000 $23.520
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