This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Capital Investments has three divisions. Each division's required rate of return is 15%. Planned ... (Read 192 times)

Alygatorr01285

  • Hero Member
  • *****
  • Posts: 564
on: Mar 6, 2021
Capital Investments has three divisions. Each division's required rate of return is 15%. Planned operating results for 2015 are as follows: 

DivisionOperating incomeInvestment
A$15,000,000$100,000,000
B$25,000,000$125,000,000
C$11,000,000$ 50,000,000
The company is planning an expansion, which will require each division to increase its investments by $25,000,000 and its income by $4,500,000. 

Required:
a.  Compute the current ROI for each division. 

b.  Compute the current residual income for each division. 

c.  Rank the divisions according to their current ROIs and residual incomes. 

d.  Determine the effects after adding the new project to each division's ROI and residual income. 

e.  Assuming the managers are evaluated on either ROI or residual income, which divisions are pleased with the expansion and which ones are unhappy?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Alygatorr01285 on Mar 6, 2021

diana chang

  • Sr. Member
  • ****
  • Posts: 288
Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 35% of students answer this correctly


Alygatorr01285

  • Member
  • Posts: 564
Reply 2 on: Mar 6, 2021
:D TYSM

vickyvicksss

  • Member
  • Posts: 351
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Feedforward control of breathing rate in an animal trained for athletic exercise. Feedforward control of breathing rate in an animal trained for athletic exercise.
This 1795 engraving of a Stamp Act protest delineates a class division. The three British Tories—one This 1795 engraving of a Stamp Act protest delineates a class division. The three British Tories—one
The nine divisions of the abdominal region. The nine divisions of the abdominal region.
Desired Fertility versus Total Fertility Rate in Developing Countries Desired Fertility versus Total Fertility Rate in Developing Countries
Major Topographic Divisions of the North Atlantic Ocean Major Topographic Divisions of the North Atlantic Ocean
The cell duplicates its DNA and prepares for nuclear division The cell duplicates its DNA and prepares for nuclear division
Video: Heart Chambers

For a complete list of videos, visit our video library