Last year, Valley Manufacturing reported sales of $800,000, net operating income of $40,000, and average operating assets of $40

Question

2 years ago

7

Last year, Valley Manufacturing reported sales of $800,000, net operating income of $40,000, and average operating assets of $40

0,000. The company is considering the purchase of equipment that will reduce expenses by $20,000. The equipment will increase average operating assets by $100,000 and be purchased by issuing a notes payable. Sales will remain unchanged. If Valley accepts the project, its return on investment (ROI) after the purchase is projected to

Business

1 answer:

Elza [17] · Answer 1 · 2022-10-01T23:00:47+03:00

Elza [17]2 years ago

7 0

Answer:increase, 10%, 12%

Explanation: