When comparing two different investment alternatives, which of the following measures for each alternative would be...
When comparing two different investment alternatives, which of the following measures for each alternative would be the best to use?
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Contribution margin ratio |
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Residual income |
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Return on investment |
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Net income |
Homework Answers
Answer is option C Return on investment
Return on investment is the most commonly used measure to evaluate the performance of investment alternatives and then to select the most profitable one. It is computed as follows:
ROI = Operating income ÷ Average Operating Assets
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When comparing two different investment alternatives, which of
the following measures for each alternative would be...
When comparing investment alternatives to each other, which is the most useful ratio or figure? Earnings...
When comparing investment alternatives to each other, which is the most useful ratio or figure? Earnings Per Share (EPS) Price-Earnings ratio (PE) Market Value Per Share Book Value Per Share Profit Margin
Return on investment can be split into which of the following two measures? Multiple Choice Investment...
Return on investment can be split into which of the following two measures? Multiple Choice Investment center income and profit margin. Profit margin and net income. Investment center average assets and investment turnover Residual income and operating income. Profit margin and investment turnover
When comparing two Investment alternatives using Incremental analysis, the higher cost alternative is attractive if the...
When comparing two Investment alternatives using Incremental analysis, the higher cost alternative is attractive if the incrementalrate ofreturn is O greater than the minimum acceptedrate of return (MARRI O less than the minimum accepted rate of return (MARR) O greater than or equal to the minimum acceptedrate of return (MARR) less than or equal to the minimum 3ccepted rate of return (MARR)
When comparing health conditions between two or more locations, which of the following measures is best...
When comparing health conditions between two or more locations, which of the following measures is best to use [Choose the ONE best answer): A Crude death rate OB. Case-fatality rate C. Adjusted death rate D. Annual mortality rate
The question is comparing two alternatives with different IRR’s and PW’s with a general MARR of...
The
question is comparing two alternatives with different IRR’s and
PW’s with a general MARR of 17%. The options are to choose
alternative A, B, or to do nothing. I got this question wrong when
working on it and don’t understand how to choose one alternative
over the other, or when to eliminate both.
4 of 4 (4 complete) This Question: 1 pt Given a MARR of 17%, which alternative should the company select? Alternative RR PW (17) 9899 13.7...
When comparing two borrowing alternatives using the l.. Incremental analysis, the higher-cost alternative is accepted If...
When comparing two borrowing alternatives using the l.. Incremental analysis, the higher-cost alternative is accepted If the incremental interestrate is Plea 1v parti ago. webc O greater than the minimum accepted rate of retorn{MARRI Good well less than or equal to the minimum acceptedrale of return (MARR) less than the minimum accepted rate of return (MARRI kel O greater than or equal to the minimum accepted rate of return (MARR) How wou
1. Will is trying to select the best investment from among 3 alternatives. Each alternative involves...
1. Will is trying to select the best investment from among 3 alternatives. Each alternative involves an initial outlay of 100,000$. Their cash flows returns for each project are as follows (in $): year project C project A 10,000 20,000 30,000 40,000 50,000 project B 50,000 40,000 30,000 min 45,000 55,000 60,000 a) Evaluate and rank each alternative based on the payback period? What are the general problems associated with using this method? b) Evaluate and rank each alternative based...
engineering economy QUESTION 5 $10,000 Consider the following two investment alternatives, in which Alternative II is...
engineering economy
QUESTION 5 $10,000 Consider the following two investment alternatives, in which Alternative II is more economically attractive than Alternative I: Alternative Alternative II Initial Investment $40,000 Useful life 5 years 10 years Terminal market value $1,000 $5,000 Annual expenses S20,000 $7,000 EUAC (12%), approx. $22,617 $13,800 Determine the percent change in the annual expenses for Alternative I that would make the two investments equally attractive. (Enter your answer as a positive or negative number without the percent %...
31) Which of the following will not result in an increase in return on investment (ROI),...
31) Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? A) A reduction in expenses. B) An increase in net operating income. C) An increase in operating assets. D) An increase in sales. 32) Tennill Inc. has a $1,400,000 investment opportunity with the following characteristics: Sales $ 4,480,000 40 % of sales Contribution margin ratio Fixed expenses S 1,657,600 The ROI for this year's investment opportunity is closest...
A firm must choose between two investment alternatives, each costing $95,000. The first alternative generates $35,000...
A firm must choose between two investment alternatives, each
costing $95,000. The first alternative generates $35,000 a year for
four years. The second pays one large lump sum of $160,100 at the
end of the fourth year. If the firm can raise the required funds to
make the investment at an annual cost of 12 percent, what are the
present values of two investment alternatives? Use Appendix B and
Appendix D to answer the question. Round your answers to the...
Return on investment can be split into which of the following two measures? Multiple Choice Investment center income and profit margin. Profit margin and net income. Investment center average assets and investment turnover Residual income and operating income. Profit margin and investment turnover
When comparing two Investment alternatives using Incremental analysis, the higher cost alternative is attractive if the incrementalrate ofreturn is O greater than the minimum acceptedrate of return (MARRI O less than the minimum accepted rate of return (MARR) O greater than or equal to the minimum acceptedrate of return (MARR) less than or equal to the minimum 3ccepted rate of return (MARR)
When comparing health conditions between two or more locations, which of the following measures is best to use [Choose the ONE best answer): A Crude death rate OB. Case-fatality rate C. Adjusted death rate D. Annual mortality rate
The
question is comparing two alternatives with different IRR’s and
PW’s with a general MARR of 17%. The options are to choose
alternative A, B, or to do nothing. I got this question wrong when
working on it and don’t understand how to choose one alternative
over the other, or when to eliminate both.
4 of 4 (4 complete) This Question: 1 pt Given a MARR of 17%, which alternative should the company select? Alternative RR PW (17) 9899 13.7...
When comparing two borrowing alternatives using the l.. Incremental analysis, the higher-cost alternative is accepted If the incremental interestrate is Plea 1v parti ago. webc O greater than the minimum accepted rate of retorn{MARRI Good well less than or equal to the minimum acceptedrale of return (MARR) less than the minimum accepted rate of return (MARRI kel O greater than or equal to the minimum accepted rate of return (MARR) How wou
1. Will is trying to select the best investment from among 3 alternatives. Each alternative involves an initial outlay of 100,000$. Their cash flows returns for each project are as follows (in $): year project C project A 10,000 20,000 30,000 40,000 50,000 project B 50,000 40,000 30,000 min 45,000 55,000 60,000 a) Evaluate and rank each alternative based on the payback period? What are the general problems associated with using this method? b) Evaluate and rank each alternative based...
engineering economy
QUESTION 5 $10,000 Consider the following two investment alternatives, in which Alternative II is more economically attractive than Alternative I: Alternative Alternative II Initial Investment $40,000 Useful life 5 years 10 years Terminal market value $1,000 $5,000 Annual expenses S20,000 $7,000 EUAC (12%), approx. $22,617 $13,800 Determine the percent change in the annual expenses for Alternative I that would make the two investments equally attractive. (Enter your answer as a positive or negative number without the percent %...
31) Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? A) A reduction in expenses. B) An increase in net operating income. C) An increase in operating assets. D) An increase in sales. 32) Tennill Inc. has a $1,400,000 investment opportunity with the following characteristics: Sales $ 4,480,000 40 % of sales Contribution margin ratio Fixed expenses S 1,657,600 The ROI for this year's investment opportunity is closest...
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