Ask Experts Questions for FREE Help !
Ask
    madkis0320's Avatar
    madkis0320 Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Oct 27, 2009, 09:28 AM
    Managerial Accounting- ROI, RI, EVA
    The following investment opportunities are available to an investment center manager:


    Project Initial Investment Annual Earnings

    A $800,000 $90,000

    B 100,000 20,000

    C 300,000 25,000

    D 400,000 60,000


    Required:


    a. If the investment manager is currently making a return on investment of 16 percent, which project(s) would the manager want to pursue?


    b. If the cost of capital is 10 percent and the annual earnings approximate cash flows excluding finance charges, which project(s) should be chosen?


    c. Suppose only one project can be chosen and the annual earnings approximate cash flows excluding finance charges. Which project should be chosen?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Oct 27, 2009, 05:37 PM

    Please see the guidelines for submitting homework problems:
    https://www.askmehelpdesk.com/financ...-b-u-font.html
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Managerial accounting help [ 1 Answers ]

Big Brick Manufacturing produces basketballs used for indoor or outdoor games. The company has been having significant troubles over the past few years, as the number of competitors in the basketball market has increased dramatically. Recently, the company has been forced to cut back production, in...

What is the difference between Managerial Accounting and Cost Accounting ? [ 3 Answers ]

Hello Dears, I want to know about the difference between Managerial Accounting and Cost Accounting. Thanks ! Sincerely Yours, Mohammad Naim

Managerial Accounting [ 1 Answers ]

Randall Company is a merchandising company that sells a single product. The company’s inventories, production, and sales in units for the next three months have been forecasted as follows: October November December Beginning inventory…………… 10,000 10,000 10,000 Merchandise Purchases 60,000...

View more questions Search