Return on investment for Multiple Investments, Reiul Income The manager of division that produces add-on products for the automobile industry has just been presented the opportunity to invest in the independent projects. The first is an air conditioner for the back metal art and minivans. The second is a turbocharger. Without the investments, the division will have werage for the coming year of $28.9 million and were cering income $4.333 milion. The only rewired for each Investment and the expected operating inces are as follows: Air conditioner Turbocharger Out $1.050.000 5540.000 Operating income 90.000 06.080 Required 1. Compute the ROI for each investment project Round to the heart whole Derent Air conditioner ROI Turbocharger 100 2. Compute the budget divisional for each of the allowing is found to com The concer vestment is made b. The turbocharger Leth me rew 1 Core hp Return on Investment for Multiple Investments, Residual Income The manager of a division that produces add-on products for the automobile industry has just been presen minivans. The second is a turbocharger. Without the investments, the division will have average assets for investment and the expected operating incomes are as follows: Air conditioner Turbocharger Outlay $1,050,000 5540,000 Operating income 90,000 86,080 Required: 1. Compute the ROI for each investment project. Round to the nearest whole percent. Air conditioner, ROI 96 Turbocharger. ROI 96 2. Compute the budgeted divisional ROI for each of the following four alternatives. Round to two decimal places The air conditioner investment is made b The turbocharger investment is made c. Both investments are made. d. Neither addtional Investment is made 9 3. Conceptul Connection Assuming that divisional managers are evaluated and rewarded on the basis of ROSA 4. Conceptual Connection Supporthat the company set minimum required rate of tot 14 Calcula 3. The air conditionerents made 5. The turbochargerita Shade & Nessionalism re to search o RE hp Turbocharger, ROI 2. Compute the budgeted divisional Rol for each of the following four alternatives. Round to two decimal places a. The air conditioner investment is made b. The turbocharger investment is made Boti investments are made d. Neither additional investment is made 3. Conceptual Connection Assuming that divisional managers are evaluated and rewarded on the basis of ROI performance, which alternative do you think the visional manager withoone? 4. Conceptual Connection Suppose that the company sets a minimum required rate of return equal to 14. Calculate the residual income for each of the following four tamaties The air conditioner investment is made The turbocharger investment is made e. Both investments are made 5 DI Nether additional Investment a made 5 which will the manager choose based on residen Income 5. Conceptual Connection Suppose that the company set minimum redaterem 10% Cacheal income for sth other conditioner investment is made socharge innement At made Norconi som har ble O Return on investment for Multiple Investments, Reiul Income The manager of division that produces add-on products for the automobile industry has just been presented the opportunity to invest in the independent projects. The first is an air conditioner for the back metal art and minivans. The second is a turbocharger. Without the investments, the division will have werage for the coming year of $28.9 million and were cering income $4.333 milion. The only rewired for each Investment and the expected operating inces are as follows: Air conditioner Turbocharger Out $1.050.000 5540.000 Operating income 90.000 06.080 Required 1. Compute the ROI for each investment project Round to the heart whole Derent Air conditioner ROI Turbocharger 100 2. Compute the budget divisional for each of the allowing is found to com The concer vestment is made b. The turbocharger Leth me rew 1 Core hp Return on Investment for Multiple Investments, Residual Income The manager of a division that produces add-on products for the automobile industry has just been presen minivans. The second is a turbocharger. Without the investments, the division will have average assets for investment and the expected operating incomes are as follows: Air conditioner Turbocharger Outlay $1,050,000 5540,000 Operating income 90,000 86,080 Required: 1. Compute the ROI for each investment project. Round to the nearest whole percent. Air conditioner, ROI 96 Turbocharger. ROI 96 2. Compute the budgeted divisional ROI for each of the following four alternatives. Round to two decimal places The air conditioner investment is made b The turbocharger investment is made c. Both investments are made. d. Neither addtional Investment is made 9 3. Conceptul Connection Assuming that divisional managers are evaluated and rewarded on the basis of ROSA 4. Conceptual Connection Supporthat the company set minimum required rate of tot 14 Calcula 3. The air conditionerents made 5. The turbochargerita Shade & Nessionalism re to search o RE hp Turbocharger, ROI 2. Compute the budgeted divisional Rol for each of the following four alternatives. Round to two decimal places a. The air conditioner investment is made b. The turbocharger investment is made Boti investments are made d. Neither additional investment is made 3. Conceptual Connection Assuming that divisional managers are evaluated and rewarded on the basis of ROI performance, which alternative do you think the visional manager withoone? 4. Conceptual Connection Suppose that the company sets a minimum required rate of return equal to 14. Calculate the residual income for each of the following four tamaties The air conditioner investment is made The turbocharger investment is made e. Both investments are made 5 DI Nether additional Investment a made 5 which will the manager choose based on residen Income 5. Conceptual Connection Suppose that the company set minimum redaterem 10% Cacheal income for sth other conditioner investment is made socharge innement At made Norconi som har ble O
