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saint leo university MBA 560 Module 8 - Test 8: Problems




Question;saint leo university MBA 560 Module 8 - Test 8: ProblemsProblem 1. Creighton Company's balance sheet and income statement are;provided below;Required;1) Compute the margin, turnover, and return on investment for Creighton;Company.;2) What is the advantage of expanding the ROI formula to measure margin and;turnover separately?;Problem 2. Delta Company is evaluating two different capital;investments, Project X and Y. Either X or Y would cost $100,000, and the;company cannot afford to do both. The company expects that Project X would;provide net cash inflows of $30,000 per year for 5 years. For Project Y, the;net cash inflows are expected to be as follows;Delta's cost of capital is 12%;Required;1) Calculate the present value index for Project X and for Project Y.;2) Indicate whether each of the projects is an acceptable investment.;3) Which of the two projects should Delta implement?


Paper#45298 | Written in 18-Jul-2015

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