Program A has a profit of $5,000 and an investment of $100,000, while program B has a profit of $10,000 and an investment of $220,000. Which program has the better ROI?
Project A
Return on Project A = Profit of Project A = $5000, Investment on Project A = $100,000
Return on Investment (ROI) of A = 5000/100000 = 0.05
Project B
Return on Project B = Profit of Project B = $10,000
Investment on Project B = $220,000
Return on Investment (ROI) of B = 10000/220000 = 0.04545455
ROI of Project A > ROI of Project B
Answer -> Project A has better ROI
Program A has a profit of $5,000 and an investment of $100,000, while program B has...
ZZR Company has a turnover of $ 10,000 and total assets of $ 5,000 while its debt-to-equity ratio is 0.5. If the rate of return on equity reaches 17%, what is its net profit?
A manager expresses indifference between a certain profit of $5,000 and a venture with a 70% chance of making $10,000 and a 30% chance of making nothing. If the manager's utility-scale is set at 1 utile for $0. and 100 utiles for $10,000. If the manager is indifferent between a venture that has a 60% chance of making $10,000 and a 40% chance of making $1,000, and a sure investment that yields $5,000. Find the value of $1,000 in utiles...
Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $36,000, invested assets of $180,000, and sales of $720,000. Use the DuPont formula to compute the return on investment. a. Profit margin % b. Investment turnover c. Return on investment %
You have two investment alternatives A and B for comparison. You should use the Return on Investment (ROI) and including a differential investment Al (for free capital in the case of investment A) assess and justify its advantageousness You have the following information: Profit Capital invested in € Investment A 150.800 € 620.000 € Investment B 165.660 € 660.000 € a) Calculate the return on investment (ROI) in percent for A and B. Which variant would be the better one?...
5. Risk aversion Erik is an investor with $5,000 available for investment. He has the folllowing three investment possibilities from which to choose: Option Scenarios Keep the $5,000 in cash for one year 1 2 Invest in a friend's business with a 50% chance of getting $10,000 after one year and a 50% chance of getting nothing Invest in a relative's business with a 3 30% chance of getting $15,000 after one year, 20% chance of getting $2,500 after one...
Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $17,982, invested assets of $74,000, and sales of $199,800. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin b. Investment turnover c. Return on investment
4. Risk aversion Erik is an investor with $5,000 available for investment. He has the following three investment possibilities from which to choose: Option Scenarios Keep the $5,000 in cash for one year. Invest in a friend's business with a 50% chance of getting $10,000 after one year and a 50% chance of getting nothing. Invest in a relative's business with a 30% chance of getting $15,000 after one year, 20% chance of getting $2,500 after one year, 50% chance...
9-59 Two equipment investments are estimated as follows: Year -$15,000 5,000 5,000 5,000 5,000 5,000 -$18,000 6,500 6,500 6,500 in 6,500 6,500 Which investment has the better discounted payback period if i = 14%?
Question 19 According to the Theory of Constraints, the primary goal of a for-profit organization is to: Increase market share and improve customer satisfaction Increase T while reducing OE and I&I Increase T. OE and I&I Increase production volume and employee satisfaction Increase T and I&I while reducing OE Question 18 The steps in Goldratt's Theory of Constraints problem solving approach include: (A): Identify and exploit the system constraint (B): Identify and remove the system constraint © (C): Subordinate everything...
9-59 Two equipment investments are estimated as follows: Year 1 -$15,000 5,000 5,000 5,000 5,000 5,000 -$18,000 6,500 6,500 6,500 6,500 6,500 Which investment has the better discounted payback period if i = 14%?