Isabelle Abiassi operates a popular summer camp for elementary school children. Projections for the current...
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Isabelle Abiassi operates a popular summer camp for elementary school children. Projections for the current year are as follows: Sales revenue$7,680,000 Operating income$676,000 Average assets $3,856,000 The camp's weighted-average cost of capital is 10% and Isabelle requires that all new investments generate a return on investment of at least 14%. The camp's current tax rate is 25%. At last week's advisory board meeting, Isabelle told the board that she had up to $50,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the board's president presented Isabelle with the following list of three potential investments to improve the camp facilities Swimming Playground 3,626 25,900 Pool 5,0182,717 38,600 Average total assets 4,300 Calculate the return on investment, residual income, and economic value added for each of the three projects. (Enter negative amounts using elther a negative sign preceding the number e.g.-45 or parentheses eg. (45). Round Economic value Added answer to 2 decimal places, e.g. 15.25 & all other answers to O decimal places, e.g. 15 or 15%.) Playground Gym Return on Investment Residual Income Economic Value Added Which of the three projects do you recommend Isabelle undertake
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