Explore BrainMass

Explore BrainMass

    ROI for each division and residual income

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Capital inv. has three divisions. each division's required rate of return is 15% planned operating for 20x5 are as follows:

    A : operating income 15,000,000 investment 100,000,000
    B : 25,000,000 125,000,000
    C : 11,000,000 50,000,000

    the company is planning an expansion, which will require each division to increase its investments by 25,000,000 and its income by 4,500,000

    A. compute the current ROI for each division.
    B. compute the current residual income for each division

    © BrainMass Inc. brainmass.com June 4, 2020, 1:21 am ad1c9bdddf

    Solution Summary

    The expert examines ROI for each division and residual income for Capital inv.