calculate the effect of the new investment opportunity on green rsquo s residual inc 598432

/in /by

Brummy Co. consists of several investment centres. Green Division has a controllable investment of $750,000 and profits are expected to be $150,000 this year. An investment opportunity is offered to Green that will yield a profit of $15,000 from an additional investment of $100,000. Brummy accepts projects if the ROI exceeds the cost of capital, which is 12%.

  • Calculate Green’s ROI currently, for the additional investment and after the investment.
  • How will Green and Brummy Co. view this investment opportunity?
  • Calculate the effect of the new investment opportunity on Green’s residual income.

DO YOU HAVE AN URGENT TASK? GET HELP NOW!.

Order Now