Question: help w both problems plz! Susan Wilson operates a popular summer camp for elementary school children. Projections for the current year are as follows: $7,620,000

help w both problems plz!
help w both problems plz! Susan Wilson operates a popular summer camp
for elementary school children. Projections for the current year are as follows:
$7,620,000 Sales revenue Operating income Average assets $670.250 $3,824,000 The camp's weighted
average cost of capital is 11%, and Susan requires that all new
investments generate a return on investment of at least 15%. The camp's

Susan Wilson operates a popular summer camp for elementary school children. Projections for the current year are as follows: $7,620,000 Sales revenue Operating income Average assets $670.250 $3,824,000 The camp's weighted average cost of capital is 11%, and Susan 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, Susan 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 Susan with the following list of three potential investments to improve the camp facilities Playground Swimming Pool Gym Incremental operating income $1,690 $6.930 $3.910 Average total assets 13,000 38,500 23,000 X Your answer is incorrect. 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, es (45). Round Return on Investment answer to 2 decimal places, eg. 15.25 & all other answers to decimal places, es. 15 or 15%) Playground Pool Gym 19 96 % Return on Investment 15 % 12 $ Residual Income $ $ -1152 568 0 -768 $ 461.5 $ Economic Value Added $ 645 Crane Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center Selected results from the latest year are as follows: Retail Stores $10,130,000 4,080,000 Internet $4,080,000 Catalog Sales $3,400,000 1.630,000 Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return 4,580,000 1,130,000 1.930,000 1,330,000 1,600,000 10% 8.080.000 4,080,000 10% 10% Your answer is correct. Calculate the current residual income for each distribution channel. (If the residual income is a loss then enter with a negative sign preceding the number, c.8. -5,125 or parenthesis, eg: (5,1251) Residual Income $ Retail 662000 Online 912000 $ 20000 Catalog (b) The corporate office is giving the managers of each channel the option of a customer relationship management system that will allow the managers to gather data about their customers and be more effective in their marketing efforts. The system will cost $930,000 and is expected to generate $168.000 in additional annual segment margin. Calculate the residual income of each distribution channel assuming it purchases the new customer relationship management system. If the residual income is a loss then enter with a negative sign preceding the number, es. -5,125 or parenthesis, eg:(5,125)) Residual Income Retail $ Online Catalog

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