- X Requirements 1. What is the original ROI for Hepburne Ceramics (before making any additional...

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- X Requirements 1. What is the original ROI for Hepburne Ceramics (before making any additional investment)? 2. What would the ROI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepbume Ceramics division want to make this investment if she evaluated it based on ROI? Why or why not? 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Placid Corporation? Why or why not? 4. What would the RI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepburne Ceramics division want to make this investment if she evaluated it based on RI? Why or why not? 5. What is the RI of the investment opportunity? Would the investment be desirable from the standpoint of Placid Corporation? Why or why not? 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why? Print Done Pail 2 of 12 Save Hepbume Ceramics, a division of Placid Corporation, has an operating income of $71,000 and total ansets of S440,000. The required rate of retun for the company is 14%. The comparny is evalunting whether it should use ROI or RI as a measurement of performance for its division managers The manager of Hepbume Ceramics has the opportunity to undertake a rw projact that will require an investment of $108,000. This investment would ean $18,000 for Hepbume Ceramics. - X Requirements 1. What is the original ROI for Hepburne Ceramics (before making any additional investment)? 2. What would the ROI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepbume Ceramics division want to make this investment if she evaluated it based on ROI? Why or why not? 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Placid Corporation? Why or why not? 4. What would the RI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepburne Ceramics division want to make this investment if she evaluated it based on RI? Why or why not? 5. What is the RI of the investment opportunity? Would the investment be desirable from the standpoint of Placid Corporation? Why or why not? 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why? Print Done Pail 2 of 12 Save Hepbume Ceramics, a division of Placid Corporation, has an operating income of $71,000 and total ansets of S440,000. The required rate of retun for the company is 14%. The comparny is evalunting whether it should use ROI or RI as a measurement of performance for its division managers The manager of Hepbume Ceramics has the opportunity to undertake a rw projact that will require an investment of $108,000. This investment would ean $18,000 for Hepbume Ceramics.

Answer rating: 100% (QA)

Solution Preston Ceramics Original ROI Return on Investment ROI operating incomeoperating assets Operating income 63000 Operating assets 420000 ROI 63... View the full answer