subject
Business, 06.05.2020 03:14 nawafcanada

The camp’s weighted-average cost of capital is 9%, and Isabelle requires that all new investments generate a return on investment of at least 14%. The camp’s current tax rate is 25%. At last week’s advisory board meeting, Isabelle told the board that she had up to $50,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the board’s president presented Isabelle with the following list of three potential investments to improve the camp facilities. Playground Swimming PoolGymIncremental operating income $3,500$ 4,800 2,700Average total assets 25,000 40,000 15,000 Required(a) Calculate the return on investment, residual income, and economic value added for each of the three projects.(b) Which of the three projects do you recommend Isabelle undertake? Why?

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 06:30, kbows12
Select all that apply. select the ways that labor unions can increase wages. collective bargaining reducing the labor supply increasing the demand for labor creating monopolies
Answers: 1
image
Business, 22.06.2019 06:50, kat2788
Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i. e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i. e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process. b)consumers have the right to clean air; consumers are dominant in the bargaining process. c)firm has the right to pollute; firm is dominant in the bargaining process. d)firm has the right to pollute; consumers are dominant in the bargaining proces
Answers: 1
image
Business, 22.06.2019 10:40, charlesrogers38
What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk
Answers: 1
image
Business, 22.06.2019 14:20, dieguezisabel
In canada, the reference base period for the cpi is 2002. by 2012, prices had risen by 21.6 percent since the base period. the inflation rate in canada in 2013 was 1.1 percent. calculate the cpi in canada in 2013. hint: use the information that “prices had risen by 21.6 percent since the base period” to find the cpi in 2012. use the inflation rate formula (inflation is the growth rate of the cpi) to find cpi in 2013, knowing the cpi in 2012 and the inflation rate. the cpi in canada in 2013 is round up your answer to the first decimal. 122.9 130.7 119.6 110.5
Answers: 1
You know the right answer?
The camp’s weighted-average cost of capital is 9%, and Isabelle requires that all new investments ge...

Questions in other subjects:

Konu
Mathematics, 29.07.2019 20:00
Konu
Computers and Technology, 29.07.2019 20:00