X Requirements 1 What Is The Original Roi For Hepburne Ceramics Before Making Any Additional Investment 2 What 1 (60.32 KiB) Viewed 44 times
X Requirements 1 What Is The Original Roi For Hepburne Ceramics Before Making Any Additional Investment 2 What 2 (19.81 KiB) Viewed 44 times
- - X Requirements 1. What is the original ROI for Hepburne Ceramics (before making any additional investment)? 2. What would the ROI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepbume Ceramics division want to make this investment if she evaluated it based on ROI? Why or why not? 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Placid Corporation? Why or why not? 4. What would the Rl be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepburne Ceramics division want to make this investment if she evaluated it based on RI? Why or why not? 5. What is the Rl of the investment opportunity? Would the investment be desirable from the standpoint of Placid Corporation? Why or why not? 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why? Print Done
Save Hepbure Ceramics, a division of Placid Corporation, has an operating income of $71,000 and total assets of $400,000. The raqured rate of return for the company is 14%. The company is evaluating whether it should use ROI or Rl as a measurement of performance for its division managers The manager of Haplume Ceramics has the opportunity to undertake a ww project that will require an investment of $108,000. This investment would earn $18,000 tot Hepburne Ceramics BARTOMER
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