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Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below. Required: 1. Compute the ROI for each division
Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below. Required: 1. Compute the ROI for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations and round your final answers to the nearest whole percent.) 2-a. Compute the simple rate of return promised by the pinball machines. (Round your answer to 1 decimal place. (i.e., 0.1234 should be considered as 12.3% ).) 2-b. If the company requires a simple rate of return of at least 16%, will the pinball machines be purchased? No Yes 3-a. If Nick's Novelties, Inc. has a discount rate of 19%, what is the NPV of this investment? (Hint Identify the relevant costs and then perform an NPV analysis.) (Negative amount should be indicated with a minus sign. Round discount factor(s) to 3 decimal places.)
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