Doobey, Incorporated, has just formed a new division, and the following four investment opportunities are available to the division. The firm requires a minimum return of 8 percent.
Required:

a.
Calculate the return on investment (ROI) for each investment opportunity.
b.
If you were the division manager and you were evaluated based on ROI, which investment opportunity would you accept?
c.
If you were president of Doobey, Incorporated, which projects would you want the division to accept?

Question

Doobey, Incorporated, has just formed a new division, and the following four investment opportunities are available to the division. The firm requires a minimum return of 8 percent.
Required:
  
a.
Calculate the return on investment (ROI) for each investment opportunity.
b.
If you were the division manager and you were evaluated based on ROI, which investment opportunity would you accept?
c.
If you were president of Doobey, Incorporated, which projects would you want the division to accept?

Quizplus · Accepted Answer

The Answer of Doobey, Incorporated, has just formed a new division, and the following four investment opportunities are available to the division. The firm requires a minimum return of 8 percent.
Required:
  
a.
Calculate the return on investment (ROI) for each investment opportunity.
b.
If you were the division manager and you were evaluated based on ROI, which investment opportunity would you accept?
c.
If you were president of Doobey, Incorporated, which projects would you want the division to accept?

Doobey, Incorporated, Has Just Formed a New Division, and the Following