Question: just looking for assistance on these problems Question #1: The Management of a large company is debating an investment. Management projects the investment will earn

just looking for assistance on these problems

Question #1: The Management of a large company is debating an investment. Management projects the investment will earn $100,000 annually. In addition, the investment will require the company to purchase $600,000 in assets. Management's decision is summarized in the following chart: Operating income Average operating assets Before Investment 600,000 3,000,000 After Investment 700,000 3,600,000 Required: a.) Assume Management is evaluated based on growth in the company's ROI. Compute the Return on Investment for the company before and after the investment. Would you recommend management make the investment? b.) Assume Management is evaluated based on growth in the company's residual income. The company's required rate of return is 15%. Compute the company's residual income before and after the investment. Would you recommend Gentry make the investment? c.) Give at least one advantage and one disadvantage of using measures like ROI and residual income to evaluate company performance. Question #2: Calculate the EVA. Then explain how would interpret the economic value added

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