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Ruth Lewis operates a popular summer camp for elementary school children, Projections for the current year are as follows: Sales revenue Operating income Average assets

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Ruth Lewis operates a popular summer camp for elementary school children, Projections for the current year are as follows: Sales revenue Operating income Average assets $8,280,000 $733,500 $4,176,000 The camp's weighted average cost of capital is 9%, and Ruth requires that all new investments generate a return on investment of at least 14%. The camp's current tax rate is 30% At last week's advisory board meeting. Ruth told the board that she had up to $70,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the board's president presented Ruth with the following list of three potential Investments to improve the camp facilities, Swimming Pool $5.100 30,000 Playground $ 2,340 19.500 Incremental operating income Average total assets Gym $ 4,080 25.500 Your answer is partially correct. Calculate the return on investment, residual income, and economic value added for each of the three projects. (Enter negative amounts using either a negative sign preceding the number, 68. -45 or parentheses, es. (45). Round Return on investment answer to 2 decimal places, eg, 15.25& all other answers to decimal places, es, 15 or 15%) Playground Pool Gym 0.12 % 0.17 96 0.16 %6 Return on Investment Residual Income Economic Value Added $ -390 $ 900 $ 510 $ $ 870 $ 561 e Textbook and Media

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