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What is the expected return i=on invested capital (ROIC) under each operating plan? Table 1. Financial Statements and Other Data on Router and PNC Balance

What is the expected return i=on invested capital (ROIC) under each operating plan?

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Table 1. Financial Statements and Other Data on Router and PNC Balance Sheets, 12/31/04 Current assets Net fixed assets Router Inc PNC $252,351 $11,125,200 $1,012,969 $18,097,800 $1,265,320 $29,223,900 Total assets so 51241,100 Current liabilities Long-term debt Total liabilities Preferred Stock Common stock Retained earnings Total common equity (50,000 shares for Router) $0 00,400 2,206,400 $1,000,0CO *.. $6,510,490 $8,026,000 26320 $16,536,490 $1,265,320 $29,223,290 Total liabilities and equity Income Statements, 2004 Routr Ind. PNC Sales Revenues $3,556,000 $82,739,300 $3,247,505 $74,727,413 3,619,56t0 $232,495 $4,392,327 693,000 $232,495 $3,699,327 1,479,731 132,000 $2,087,596 $1,507,000 Operating costs Depreciation Operating Income (EBIT) $76,000 Interest Taxable lncome $0 Taxes Preferred div?dends Net Income for common Free Cash Flow (FCF) $92,998 S0 $139,497 $109,497 Table 1. Financial Statements and Other Data on Router and PNC Balance Sheets, 12/31/04 Current assets Net fixed assets Router Inc PNC $252,351 $11,125,200 $1,012,969 $18,097,800 $1,265,320 $29,223,900 Total assets so 51241,100 Current liabilities Long-term debt Total liabilities Preferred Stock Common stock Retained earnings Total common equity (50,000 shares for Router) $0 00,400 2,206,400 $1,000,0CO *.. $6,510,490 $8,026,000 26320 $16,536,490 $1,265,320 $29,223,290 Total liabilities and equity Income Statements, 2004 Routr Ind. PNC Sales Revenues $3,556,000 $82,739,300 $3,247,505 $74,727,413 3,619,56t0 $232,495 $4,392,327 693,000 $232,495 $3,699,327 1,479,731 132,000 $2,087,596 $1,507,000 Operating costs Depreciation Operating Income (EBIT) $76,000 Interest Taxable lncome $0 Taxes Preferred div?dends Net Income for common Free Cash Flow (FCF) $92,998 S0 $139,497 $109,497

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