Le Sud Retailers has a current return on investment of 10% and the company has established an 8% minimum rate of return for the division. The division manager has two investment projects available, for which the following estimates have been made:
Project A - Annual controllable margin = $24,000, operating assets = $400,000
Project B - Annual controllable margin = $60,000, operating assets = $550,000
Which project should be funded?
a) Both projects
b) Project A
c) Project B
d) Neither project
Ans: c) Project B
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Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people
Indicate whether the statement is true or false
On December 1, $125,000 was deposited with a fiscal agent for payment on bonds payable in the amount of $90,000 and interest payable for $35,000 due maturing on the last day of December. This will require a debit of a. $125,000 to the Expenditure account in the General Fund
b. $35,000 to the Expenditure account in the General Fund. c. $125,000 to the Other Financing Uses--Transfers Out account in the General Fund. d. $35,000 to the Expenditure account in the Debt Service Fund.