An investment center of Lannigan Company reported operating income of $330,000 on total operating assets of $2,600,000 during the current year. The company has established a target ROI of 13% for the investment center. Last year, the investment center's ROI was 12.2%.Required: Calculate the return on investment for the investment center for the current year. Compare its performance with both the performance from the previous year and the target ROI.
What will be an ideal response?
Return on investment = $330,000 ÷ $2,600,000 = 12.7%.
The division exceeded its own performance from the previous year but fell just short of the target ROI established by company management.
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Brooks Company will receive $10,000 a year at the end of each of the next five years. Using a discount rate of 14%, the present value of the receipts can be stated as ________.
A) PV = $10,000 (Ordinary Annuity FV factor, i = 14%, n = 5) B) PV = $10,000 (PV factor, i = 14%, n = 5) C) PV = $10,000 (Ordinary Annuity PV factor, i = 14%, n = 5) D) PV = $10,000 (FV factor, i = 14%, n = 5)
What is a non-media connector?
What will be an ideal response?
A ski resort with a calendar year-end is likely to have:
A. a fairly stable cash flow across all four quarters. B. unpredictable fluctuations in cash flow from quarter to quarter. C. the largest cash inflow from operating activities in the second and third quarters (April - September). D. the largest cash inflow from operating activities in the fourth and first quarters (October - March).
In analyzing the strength of competition among rival firms, an important consideration is
A. the diversity of competitors in terms of long-term direction, objectives, strategies, and countries of origin. B. whether the industry is characterized by a strong learning/experience curve and whether the industry is composed of many or few strategic groups. C. the potential for buyers to exercise strong bargaining power. D. the extent to which some rivals have more than two competitively valuable competencies or capabilities. E. the number of firms pursuing differentiation strategies versus the number pursuing low-cost leadership strategies and focus strategies.