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Strike441 [17]
2 years ago
5

Sunnyvale Inc. is considering investing in a new project. The average invested assets of the project would be $450,000 and the i

ncremental operating income would be $37,000. The company currently generates operating income of $220,000 and the invested assets are $2,005,000. The required rate of return (hurdle rate) is 5% on new projects.
Required:
a. What is the ROI before investing in the project?
b. What is the residual income before investing in the project?
c. What is the after investing in the project? (Round your answer to 2 decimal places.)
d. What is the residual income after investing in the project?
Business
1 answer:
hram777 [196]2 years ago
8 0

Answer:

Rate of Interest = Operating Income/Average Invested Asset

Residual Income = (Operating Income- Average Invested Assets)*Minimum Required rate of return

a. ROI before investing = $220,000/$2,005,000

ROI before investing = 0.109725686

ROI before investing = 10.97%

b. Residual Income = $220,000 - $2,005,000*5%

Residual Income = $220,000 - $100,250

Residual Income = $119,750

c. ROI after investing = ($220,000+$37,000) / ($2,005,000+$450,000)

ROI after investing = $257,000/$2,455,000

ROI after investing = 0.10468432

ROI after investing = 10.47%

d. Residual Income after investing = $220,000 + $37,000

Residual Income after investing = $257,000

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The systems development life cycle in which model developers use a model to generate functional requirements and physical design specifications simultaneously is:

  • Prototyping life cycle

<h3>What is a Model?</h3>

This is a prototype which is used to represent a real thing to show the real life scenarios and applications on a much smaller scale.

With this in mind, we can see that in the prototyping life cycle, the model developers make functional requirements simultaneously to find out how the physical design specifications would look like.

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Aloiza [94]

Answer:

$5100

Explanation:

The cost of the inventory in $25000 and the cost of shipping it to the consignee, $500.

The cost of marketing brochures an comissions are recognized as expense and do not affect inventory.  If 80% of the inventory was sold, 20% remains, which will have a carrying value of $25,500 X 20% = $5100

6 0
3 years ago
On December​ 31, Sulfur Corporation has the following data​ available: Net Income $ 140 comma 000 Market price of one share of c
GarryVolchara [31]

Answer:

Earnings per share

= <u>Net income - Preferred dividend</u>

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=  <u>$6.00</u>

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= 18

Explanation:

There is need to calculate earnings per share, which is net income minus preferred dividend divided by number of common stocks outstanding at the end of the year. Finally, we will calculate price-earnings ratio, which is the ratio of market price per share to earnings per share.

7 0
3 years ago
The income effect, the substitution effect, and diminishing marginal utility together explain:______.
lorasvet [3.4K]

The income effect, the substitution effect, and diminishing marginal utility together explain the Downsloping Demand Curve.

The Downsloping Demand Curve is explained by each of them. Because marginal utility decreases as more of a thing are consumed, a consumer's demand curve for that product slopes downward.

Income Effect: The change in demand for a good or service brought on by a shift in a consumer's purchasing power as a result of a change in real income is known as the income effect.

Substitution Effect: The substitution impact is the decline in sales of a product brought on by customers switching to less expensive substitutes when the price of the product increases.

Diminishing Marginal Utility: The phenomenon known as diminishing marginal utility describes how each extra unit of gain results in an ever-smaller rise in subjective value.

The income effect, the substitution effect, and diminishing marginal utility together explain the Downsloping Demand Curve.

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3 0
1 year ago
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vesna_86 [32]

Answer:

a. Team performance curve

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A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.

This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.

Team performance curve indicates that there can be a performance decrease as a team goes through the storming phase of team development. During the storming phase in team development, team performance declines for a period of time as conflicts emerge regarding goals and contributions of team members.

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