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Sati [7]
3 years ago
7

Supercircuits is a decentralized company and has a required opportunity cost of capital of 15%. The home computer division, whos

e current ROI IS 10%, is considering an investment which will earn 13% return. The gaming division, whose current ROI is 20%. Is considering an investment which will earn a 17% return. If the objective is to maximize residual income, each division will make the following choice:______. Computer Gaming A. Reject Accept B. Accept Reject C. Accept Accept D. Rejec Reject
Business
1 answer:
stiks02 [169]3 years ago
6 0

Answer:

B. Accept Reject

Explanation:

As we can see that the home computer has the earning of 10% and its return on investment is increased to 13% so it is a better choice for division of home computer to accept the investment and the other division i.e. gaming division should reject the proposal as it is already earned the 20% and if it is accepted so it decreased the return on investment

Therefore the option B is correct

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Answer:

a) 12.23%

b)  12.94%

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Explanation:

price of truck = $15000

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attached below is the Amortization schedule

c) 14th month payment interest = $157.33

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d) 18th month payment interest = $142.04

    18th month payment interest = $384.79

e) 22nd month payment interest = $126.12

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Answer:

Please see attachment

Explanation:

Please see attachment

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