Question: Question 2 of 3 -18 E View Policies Current Attempt in Progress Patricia Johnson operates a popular summer camp for elementary school children. Projections for

 Question 2 of 3 -18 E View Policies Current Attempt in
Progress Patricia Johnson operates a popular summer camp for elementary school children.

Question 2 of 3 -18 E View Policies Current Attempt in Progress Patricia Johnson operates a popular summer camp for elementary school children. Projections for the current year are as follows: Sales revenue $7.260,000 Operating income $635.750 Average assets $3,632,000 The camp's weighted average cost of capital is 8%, and Patricia requires that all new investments generate a return on investment of at least 12%. The camp's current tax rate is 30% At last week's advisory board meeting. Patricia 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 Patricia with the following list of three potential Investments to improve the camp facilities Swimming Pool Incremental operating income Average total assets Playground $ 1,360 13.600 $ 5.580 37.200 Gym $3.290 23,500 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. 45 ar parentheses, es 45). Round Return on Investment answer to 2 decimal places, s. 15.25 & all other answers to 0 decimal places, c. 15 or 15) (a) 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, 2.3.-45 or parentheses, e.s. (45). Round Return on Investment answer to 2 decimal places, s. 15.25 & all other answers to decimal places, eg, 15 or 15%) Playground Pool Gym Return on Investment Residual Income Economic $ Value Added $ $ $ e Textbook and Media Save for Later Attempts: 0 of 12 used Submit

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