Reference no: EM131077349
EXERCISE 1
Performance and ROI versus Residual Income
An investment center in Shellforth Corporation was asked to identify three proposals for its capital. Details of those proposals are:
Capital Budget Proposals
A B C
Capital required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $80,000 $50,000 $150,000
Annual operating return . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000 16,000 15,000
Shellforth uses residual income to evaluate all capital budgeting projects. Its minimum required return is 12 percent.
a. Assume you are the investment center manager. Which project do you prefer? Why?
b. Assume your investment center's current ROI is 18 percent and that the president of Shellforthis thinking about using ROI for the investment center's evaluation. Would your preferences for the projects listed above change? Why?
EXERCISE 2
Concerns about ROI
Jennifer Baskiter is president and CEO of Plants& More.com , an Internet company that sells plants and flowers. The success of her startup Internet company has motivated her to expand and create two divisions. One division focuses on sales to the general public and the other focuses on business-to-business sales to hotels, restaurants, and other firms that want plants and flowers for their businesses. She is considering using return on investment as a means of evaluating her divisions and their managers. She has hired you as a compensation consultant. What issues or concernswould you raise regarding the use of ROI for evaluating the divisions and their managers?
|
Find the eigenvalues and corresponding eigenvectors
: Math 121A: Homework 4. Find the eigenvalues and corresponding eigenvectors of the matrix. Show that if λ is an eigenvalue of an orthogonal matrix A with eigenvector v, then λ = ±1
|
|
What hormone might she be given to treat the osteoporosis
: What hormone might she be given to treat the osteoporosis? How does this medication help? How would this be effected by a low TSH?
|
|
Case study - short-term financial planning
: The high degree of financial risk is a concern to the company's controller as she prepares the budget for the coming fiscal year.
|
|
Solve the system using row reduction techniques,
: Math 121A: Homework 3. Alice, Bob, and Charlie are three siblings with ages a, b, and c respectively. Their combined age is 18 years. Solve the system using row reduction techniques, or otherwise
|
|
What issues or concernswould you raise regarding use of roi
: She has hired you as a compensation consultant. What issues or concernswould you raise regarding the use of ROI for evaluating the divisions and their managers?
|
|
Construct the transformer circuit in multisim
: Consider the circuit demonstrated in this week's presentations. With the turns ratio modified to 20:1, calculate the following values of Vs and Is for the given values of RL in the table below:
|
|
Organizational strategy and enterprise architecture
: For this assignment, you will be asked to to focus on a strategy: The College of IST wants to increase its enrollment by a total of 20% within the next three years. It wants you to provide ideas for each of Porter's four strategies.
|
|
Difference between multiprogramming and multi-threading
: Under what circumstances would you choose to use an interpreted language?
|
|
Find expressions for u and v in terms of x and y
: Math 121A: Homework 2. The complex numbers z and w are related by w = 1 + iz/i + z. Write z = x + iy and w = u + iv where u, v, x, and y are real. Find expressions for u and v in terms of x and y
|