Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pres Hepbure Ceramics, a division of Preston Corporation, has an operating income of 573,000 and total assets of $405,000. The required rate of return for
Pres Hepbure Ceramics, a division of Preston Corporation, has an operating income of 573,000 and total assets of $405,000. The required rate of return for the company is 1 14% The company is evaluating whether it should use ROI or Rl as a measurement of performance for its division managers The manager of Hepburn Ceramics has the opportunity to undertake a new project that will require an investment of 108,000. This investment would surn $21.000 for Rotu Hepbume Ceramics OpeRequements www Ope Operating income Total assets ROI ROI What is the original retum on investment (ROI) for Hepburne Ceramick? (Round your answer to two decimal places.) 1 Hepburne Ceramics's original Rolis 18.02% Requirement 2. What would the Rol be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hapture Ceramics division want to make this investment if she evaluated it based on ROI? Why or why not? First find the ROI for Hepburne Coramics if this investment opportunity wore undertaken (Round your answer to two decimal places.) Ope If this investment opportunity were undertakon, the ROI would be 18.32% Tot Tota ROI Choose from any drop-down list and then continue to the next question NA on Hepburne Ceramics, a division of Preston Corporation, has an operating income of $73,000 and total assets of S405,000. The required rate of retum for the company is Ope 14%. The company is evaluating whether it should use ROI or RI as a measurement of performance for its division managers The manager of Hepburne Ceramics has the opportunity to undertake a new project that will require an investment of $108,000. This investment would earn $21.000 for ROL Hepburne Ceramics 1 Requirements Inve Hepburne Ceramics's original Rolis 18.02% Total Requirement 2. What would the ROI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepbure Ceramics Ope division want to make this investment if she evaluated it based on ROI? Why or why not? Tota First find the ROI for Hepbume Ceramics if this investment opportunity were undertaken (Round your answer to two decimal places.) If this investment opportunity were undertaken the ROI would be 18.32% ROI Would the manager of the Hepburne Ceramics division want to make this investment if she evaluated it based on ROI? Why or why not? No, on The manager of this division should make this investment because investing in the new project increases the division's ROL Th Choose from any drop-down list and then continue to the next question. Doncos forma SIR200 Type here to search
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started