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You are the Director of Operations for the Greater Hamilton Region segment of Alpha Inc., a large national manufacturer of toys with manufacturing plants across
You are the Director of Operations for the Greater Hamilton Region segment of Alpha Inc., a large national manufacturer of toys with manufacturing plants across Canada. Some of your financial results for 2022 showed the following information: Sales revenue $2,500,000 Operating expenses Operating assets as at Jan 1, 2022 Operating assets as at Dec 31, 2022 $1,750,000 $3,000,000 $3,250,000 et book value of property, plant & equipment as at Dec 31, 2022 $2,600,000 quired: 1. Calculate your Return on Investment (ROI) for 2022. Show your calculations (6 marks), and You are being encouraged by Alpha Inc's Head Office to purchase a new machine for your operation that has been estimated to have a ROI of 23% which is 2.5% higher than Alpha Inc's overall ROI. Should you purchase this machine? Why or why not? (3 marks) your answer in the space below
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