Current Attempt in Progress

Nancy couldn't believe it: The small piece of undeveloped property adjacent to her restaurant just went up for sale! Sheld been waiting for this day for years, she had dreamed of a lovely garden with outdoor customer seating Glven the trend for rustic environments, she could set out her edisting dining tables and be ready for outdoor seating immediately. She even had financing avaliable for this purchase. The timing might be tricky thoughc her location was one of many under the corporate umbrella, and executives had Just rolled out more stringent goals for eachlocation Nancy's location generated a $12\%$ ROIl last year and was on track to maintain that level this year.

Nancy is evaluated on the following for her location: $(1)$ maintaining or improving ROI and $(2)$ generating positive EVA. The property was listed for $$850,000,$ and she would need to finance all of it$.$ Corporate's tax rate was $24$ K $,$ its average debt rate was $4$ K $,$ and its cost of equity was $8\%.$ Currently, corporate's financial position reflected $60\%$ debt and $40\%$ equity financine. The purchase of this land would bump up the debt proportion to $65\%.$ Still, Nancy anticipated additional operating income of $545,900$ associated with this new space through year$-$end.

$($a$)$

What is the projected ROI for this land purchase? $($Round answer to $3$ decimel ploces, es $0\mathrm{.}152)$

Projected ROI $$

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Attempts: $0$ of $3$ unsed $$

$($b$)$

The parts of this quertion must be completed in order. This part will be avallable when you complete the part above

$($c$)$

The pats of thif question must be conpleted in order. This part will be avallable when you complete the purt above