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book Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello cover

Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

النسخة 17الرقم المعياري الدولي: 978-0078025778
book Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello cover

Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

النسخة 17الرقم المعياري الدولي: 978-0078025778
تمرين 26
Performance and ROI versus Residual Income
An investment center in Shellforth Corporation was asked to identify three proposals for its capital budget. Details of those proposals are:
Capital Budget Proposals
Performance and ROI versus Residual Income An investment center in Shellforth Corporation was asked to identify three proposals for its capital budget. Details of those proposals are: Capital Budget Proposals      Shellforth uses residual income to evaluate all capital budgeting projects. Its minimum required return is 12 percent. a. Assume you are the investment center manager. Which project do you prefer? Why? b. Assume your investment center's current ROI is 18 percent and that the president of Shellforth is thinking about using ROI for the investment center's evaluation. Would your preferences for the projects listed above change? Why?
Shellforth uses residual income to evaluate all capital budgeting projects. Its minimum required return is 12 percent.
a. Assume you are the investment center manager. Which project do you prefer? Why?
b. Assume your investment center's current ROI is 18 percent and that the president of Shellforth is thinking about using ROI for the investment center's evaluation. Would your preferences for the projects listed above change? Why?
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Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
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