Use the following information to answer the questions Sales Average operating assets Net operating income Minimum required rate of return Company X $ 15,650,00 $ 3,170.00 697,400 8.00 Company V 5 28,680,000 $ 7,170,000 5 487,560 8.50 Company z $ 20,600,000 $ 5,170,000 $ 620,400 12.00% Required: 1. Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover 2. Compute the residual income foss) for each company 3. Each company is presented with an investment opportunity that would yield a 9% rate of return a. Assume performance is measured based on ROI Indicate whether each company will likely accept or reject the investment opportunity b. Assume performance is measured based on residual income Indicate whether each company will likely accept or reject the Investment opportunity Complete this question by entering your answers in the tabs below. Raq 1 Reg 2 RA Red 30 Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places (ie, 0275 should be entered s 2.75.)) Margin Turnover Company X Company Y Company z % ROL Reg 2 > Use the following information to answer the questions. Sales Average operating assets Net operating income minimum required rate of return Company 515,850,00 $ 3,170,000 $ 697,400 3.00% Company $ 20,680,000 $ 7,120,000 $ 407,560 8.50 Company 20,600,000 $ 5,170,000 5 620,400 12.00 Required: 1. Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover 2. Compute the residual income foss) for each company 3. Each company is presented with an investment opportunity that would yield a 9% rate of return a. Assume performance is measured based on ROM indicate whether each company will likely accept or reject the investment opportunity b. Assume performance is measured based on residual income Indicate whether each company will likely accept or reject the investment opportunity Complete this question by entering your answers in the tabs below. Reg Reg 2 ROSA Reg38 Compute the residual income (los) for each company. (Do not round Intermediate calculations. Loss amounts should be indicated by a minus sign.) Company X Company Y Company Residual income (ons) Use the following information to answer the questions Company Sales $ 15,150,000 Average operating assets 33.120.000 Net operating income 5 697,400 Minimum required rate of return 8.00 Company $ 28,600,000 7,170,000 3 487.560 8.50% Kompany 2 $ 20,600,000 $ 5.170.000 1 620.00 12.00 Required: 1 Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover 2. Compute the residual income foss) for each company 3. Each company is presented with an investment opportunity that would yield a 9% rate of return a. Assume performance is measured based on ROE Indicate whether each company will likely accept or reject the investment opportunity b. Assume performance is measured based on residual income indicate whether each company will likely accept or reject the investment opportunity Complete this question by entering your answers in the tabs below. Rat Reg 2 Req Reu Each company is presented with an investment opportunity that would yield a rate of return. Assume performance measured based on ROE Indicate whether each company will likely accept or reject the investment opportunity Company Company Company 2
