Deshaun invested his savings in two investment funds. The amount he invested in Fund A was 3 times as much as the amount he invested in Fund B. Fund A returned a 7% profit and Fund B returned a 4% profit. How much did he invest in Fund B, if the total profit from the two funds together was $2000? *
Deshaun invested his savings in two investment funds. The amount he invested in Fund A was 3 times as much as the amount he invested in Fund B. Fund A returned a 7% profit and Fund B returned a 4% profit. How much did he invest in Fund B, if the total profit from the two funds together was $2000? *
Related questions
Select the incorrect statement regarding thereturn on equity (ROE) measure.
| A. | ROE is used to measure the profitability of the firm in relationto the amount invested by stockholders. | |
| B. | A company's ROE is lower than its return on investment becauseROE does not consider that part of the business that is financed bydebt. | |
| C. | ROE is affected by a company's use of leverage. | |
| D. | ROE equals net income divided by total stockholders' equity. |
A company is evaluating three possible investments. Each usesthe straight - line method of depreciation. The followinginformation is provided by the company:
Investment: $212,000
Salvage Value: $30,000
Net Cash Flows
Year 1: $86,000
Year 2: $56,000
Year 3: $66,000
Year 4: $26,000
Year 5: $0
What is the accounting rate of return?
A) 14.15%
B) 12.26%
C) 10.74%
D) 26.92%
________________
This is how I did it:
| Total Net Cash Inflows | 234,000 |
| Less: Total Depreciation (212,000-30,000) | 182,000 |
| Total Operating Income During Operating Life | 52,000 |
| Divide By Assets Operating Life in Years | 4 |
| Average Annual Operating Income | 13,000 |
I wasnt sure if I should divide by 4 or 5, but dividingby 4 got me an answer provided. Is that the right number touse?
Average Amount Invested = (Amount Invested + ResidualValue)/2
= (212,000 + 30,000)/2 = 121,000
I used my salvage value as my residual value.
Finally, to get ARR:
= Average Annual Operating Income / Average Amount Invested
=13,000 / 121,000 = .1074380165 = 10.74%
Is that the right way or am I doing it inccorrectly?
A food manufacturer reports the following for two of itsdivisions for a recent year.
| ($millions) | Beverage Division | Cheese Division | ||||||||||||||||||||||||||||||||||||
| Invested assets,beginning | $ | 2,675 | $ | 4,468 | ||||||||||||||||||||||||||||||||||
| Invested assets, ending | 2,599 | 4,406 | ||||||||||||||||||||||||||||||||||||
| Sales | 2,687 | 3,931 | ||||||||||||||||||||||||||||||||||||
| Operating income | 355 | 640 | ||||||||||||||||||||||||||||||||||||
|
Compute return on investment. (Enter your answers inmillions.)
| ||||||||||||||||||||||||||||||||||||||
Compute profit margin. (Enter your answers in millions.)
| ||||||||||||||||||||||||||||||
Compute investment turnover for the year. (Enter your answers in millions.)
| ||||||||||||||||||||||||||||||
