The company is prepared to invest a maximum of $18,817,204 for the project.
Response:
The return on equity (ROE) would be altered by 8.52%
Clarification:
Initially, we determine the existing ROE utilizing the Dupont Formula, yielding ROE as follows:
ROE = Net Income/Sales * Sales/Total Assets * Total Assets/Equity
or
ROE = Net Profit Margin * Total Assets Turnover * Equity Multiplier
- Current ROE = 10600/295000 * 1.4 * 1.75 = 0.0880 or 8.8%
The condition states that net income might rise to 20850 while other factors remain unchanged. Therefore, to find the new ROE, we compute the updated Net Profit margin, keeping the total assets turnover and the equity multiplier constant due to the absence of sales, assets, or capital structure changes.
- New ROE = 20850/295000 * 1.4 * 1.75 = 0.17316 or 17.32%
- The ROE would have shifted by 17.32 - 8.80 = 8.52%
Answer:
Universal Containers wishes to assign Cases using the same criteria employed for Live Agent chats. Which feature should a Consultant propose?
Omni-channel Skills-based routing
Explanation:
Depreciation refers to the reduction in an asset's value over time due to wear and tear. Calculating depreciation using the straight-line method results in $38,960 written off annually. This yields a depreciation rate of 16.34% per year. In comparison, using the double declining method results in a depreciation rate of 32.68% annually, with the first year's depreciation amount being $77,909.
