Carl's Connection manufactures add-on products for the automobile industry. The manager at Carl's Connections has just been presented the opportunity to invest in two independent projects. The first is an air conditioner for the back seats of vans. The second opportunity is turbocharger for sedans. Withoud either investment, the company currently expects average assets for the coming year to be $28.9 million and expects operating income to be $4.335 million. Below is the expected cost for each investment and their expected operating income. It can be assumed that the outlay is the value of the asset. Air Conditioner TurboCharger Outlay $750,000.00 $600,000.00 Operating Income $90,000.00 $82,080.00 Compute the ROI, for the company as a whole, considering each alternative below. After in percent form, round to the nearest hundredth Company ROI, if only the air conditioner investment is made: Company ROI, if only the turbocharger investment is made Company ROI, if both investments are made Company ROI, if neither investment is made
Carl's Connection manufactures add-on products for the automobile industry. The manager at Carl's Connections has just been presented the opportunity to invest in two independent projects. The first is an air conditioner for the back seats of vans. The second opportunity is turbocharger for sedans. Withoud either investment, the company currently expects average assets for the coming year to be $28.9 million and expects operating income to be $4.335 million. Below is the expected cost for each investment and their expected operating income. It can be assumed that the outlay is the value of the asset.
Air Conditioner TurboCharger
Outlay $750,000.00 $600,000.00
Operating Income $90,000.00 $82,080.00
Compute the
Company ROI, if only the air conditioner investment is made:
Company ROI, if only the turbocharger investment is made
Company ROI, if both investments are made
Company ROI, if neither investment is made
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
