2 Evaluating New Investments Using Return on Investment

In today’s business environment, the need for critical thinking skills for both smaller and larger companies is much more prevalent and employers are looking for these skills more and more each day. This Assignment will help you gain some vital experience in writing down your critical thinking process with the intent of showing someone else how to follow your logic. You will be using Exercise 11-12 from your homework Assignment and breaking it down on a step by step basis explaining what you did to solve it and why. Be sure to put those steps in a word document in paragraph format. You may use bullet points as a sort of “table” to highlight the steps for clarity (and I recommend this step), but paragraph format is still required. The word document should be a minimum of at least one page and no more than three pages in length. Good luck and remember to enjoy this Assignment as critical thinking is a part of business today so you will be doing this throughout your career–it may be in by verbal explanation and not in written form or you may have to write down instructions for a subordinate to follow EXERCISE 11–12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income LO11–1, LO11–2 Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $12,400,000 $35,500,000 $20,400,000 Average operating assets $3,100,000 $7,100,000 $5,100,000 Net operating income $508,400 $426,000 $510,000 Minimum required rate of return 7.00% 7.50% 10.00% Required: Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. Compute the residual income for each division. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? Reject? Why?

Don't use plagiarized sources. Get Your Custom Essay on
2 Evaluating New Investments Using Return on Investment
Just from $13/Page
Order Essay
Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your essay today and save 15% with the discount code ESSAYHELP