One of Lex Company's investment center has a residual income of P55000 at a required return of 15%. An investment opport
Posted: Wed Mar 09, 2022 8:17 am
One of Lex Company's investment center has a residual income of
P55000 at a required return of 15%. An investment opportunity equal
to 15% of the current value of assets would increase the residual
income to P85000. The ROI after the additional investment is 17%.
Required:
a. The amount of additional investment
b. Net income of the investment center before the additional
investment
c. ROI of the investment center before the additional
investment
d. The total assets of the
investment center after the additional investment
(Round off peso values to TWO Decimal places and the PERCENTAGE
amount in four decimal places, include the "%" sign in your answer.
input amounts like this: 100,000.00 for peso amounts, and 21.34%
for percentage answers) - 21.34% is already four decimal places
(0.2134 when converted to decimal)
P55000 at a required return of 15%. An investment opportunity equal
to 15% of the current value of assets would increase the residual
income to P85000. The ROI after the additional investment is 17%.
Required:
a. The amount of additional investment
b. Net income of the investment center before the additional
investment
c. ROI of the investment center before the additional
investment
d. The total assets of the
investment center after the additional investment
(Round off peso values to TWO Decimal places and the PERCENTAGE
amount in four decimal places, include the "%" sign in your answer.
input amounts like this: 100,000.00 for peso amounts, and 21.34%
for percentage answers) - 21.34% is already four decimal places
(0.2134 when converted to decimal)