there is a part B as well What am i doing wrong on my...

60.1K

Verified Solution

Question

Accounting

image
image
image
there is a part B as well
What am i doing wrong on my Residdual & Economic value
image
Helen Martin operates a popular summer camp for elementary school children Projections for the current year are as follows: Sales revenue Operating Income Average assets $8,040,000 $710,500 $4,048,000 The camp's weighted average cost of capital is 10%, and Helen requires that all new investments generate a return on investment of at least 15%. The camp's current tax rate is 30%. At last week's advisory board meeting, Helen told the board that she had up to $70,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the board's president presented Helen with the following list of three potential investments to improve the camp facilities Swimming Playground Gym Incremental operating Income $ 1,690 $6.750 $3,740 Average total assets 37.500 Pool 13,000 22,000 Sales revenue Operating income Average assets $8,040,000 $710,500 $4,048,000 The camp's weighted average cost of capital is 10%, and Helen requires that all new investments generate a return on investment of at least 15%. The camp's current tax rate is 30%. At last week's advisory board meeting. Helen told the board that she had up to $70,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the board's president presented Helen with the following list of three potential Investments to improve the camp facilities. Swimming Playground Pool Gym Incremental operating income $ 1,690 $ 6,750 $3,740 Average total assets 13,000 37,500 22,000 (a) - Your answer is partially correct Calculate the return on investment, residual income, and economic value added for each of the three projects. (Enter negative amounts using either a negative sign preceding the number, eg -45 or parentheses, e3. (45). Round Return on Investment answer to 2 decimal places, e.g. 15.25 & all other answers to decimal places, eg, 15 or 15%) Playground Pool Gym Return on Investment Residual Income Economic 13 10 17 $ 0 Calculate the return on investment, residual income, and economic value added for each of the three projects. (Enter negative amounts using either a negative sign preceding the number. 63.-45 or parentheses, && (45). Round Return on investment answer to 2 decimai places, es. 15.25 & all other answers to decimal places, eg, 15 or 15%) Playground Pool Gym 13 18 % 17 Return on Investment Residual Income Economic Value Added 0 1287325 S 1312 605 eTextbook and Media Save for Later Attempts: 2 of 12 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the pachabove. Your answer is partially correct. Calculate the return on investment, residual income, and economic value added for each of the three projects. (Enter negative amounts using either a negative sin preceding the numbers, 45 or parentheses, 03.(45). Round Return on investment answer to 2 decimal places, e.g. 15.25 & all other answers to decimal plans es. 15 or 15%) Playground Pool Gym 13 18 0 Return on Investment Residual Income Economic Value Added 1287.325 1312 60S e Textbook and Media Save for Later Attempts: 2 of 12 used Submit Answer (b) The parts of this question must be como will be available when you complete the part above

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students