Subject: accounting ABC Corporation has divisions. One of the division is currently, making a profit of OMR 82,000 per year. On investment of OMR 500,000 and has a target return of 15%. The manager of a company is considering a new investment, which will require additional investment of OMR 100,000 and will generate additional profit of OMR 17,000 per year. Calculate whether or not the new investment is attractive to the company as a whole. Calculate the ROI of the division, with and without new investment and hence determine whether or not manager would decide to accept the new investment
Subject: accounting ABC Corporation has divisions. One of the division is currently, making a profit of OMR 82,000 per year. On investment of OMR 500,000 and has a target return of 15%. The manager of a company is considering a new investment, which will require additional investment of OMR 100,000 and will generate additional profit of OMR 17,000 per year. Calculate whether or not the new investment is attractive to the company as a whole. Calculate the ROI of the division, with and without new investment and hence determine whether or not manager would decide to accept the new investment
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 3PA: The income statement comparison for Forklift Material Handling shows the income statement for the...
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Subject: accounting
ABC Corporation has divisions. One of the division is currently, making a profit of OMR 82,000 per year. On investment of OMR 500,000 and has a target return of 15%.
The manager of a company is considering a new investment, which will require additional investment of OMR 100,000 and will generate additional profit of OMR 17,000 per year.
Calculate whether or not the new investment is attractive to the company as a whole.
Calculate the
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