Investment opportunities are available to investment center

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Reference no: EM131294094

The following new investment opportunities are available to an investment center manager:

Project                Average Op. Assets            Annual Op. Income

I                                $1,600,000                         $180,000

II                                    200,000                         40,000

III                                   600,000                           50,000

IV                                   800,000                           120,000

a. If the investment manager is currently making an ROI of 15%, which project(s) would the manager want to pursue?

b. If the required rate of return by the company is 10%, which project(s) could be chosen?

c. If only one project can be chosen, which project should be chosen to receive maximum benefit from the company's point of view? Explain.

If only one project can be chosen, which project would be chosen by the investment center manager? Would that choice be in the best interest of the company? Explain.

Reference no: EM131294094

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