1/ A company\'s current net operating income is $16,800 and its average operatin

Question

1/ A company's current net operating income is $16,800 and its average operating assets are $80,000. The company's required rate of return is 18%. A new project being considered would require an investment of $15,000 and would generate annual net operating income of $3,000. What is the residual income of the new project? A) 20.8% B) 20% C) $150 D) $300 2/Aide Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales ........................................17,400,000 Net operating income ................870,000 Average operating assets ........4,000,000 The division's return on investment (ROI) is closest to: A) 4.1% B) 21.75% C) 17.9% D) 1.1% 2/

Explanation / Answer

C) 17.9%

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