81. Determine the February 20xx residual income for an investment center with the following information:
Operating income for the month ended February 28, 20xx $2,900,000
Desired ROI 52%
Actual ROI 38%
Assets invested $18,200,000
A. ($4,016,000)
B. ($5,836,000)
C. ($6,564,000)
D. ($8,384,000)
82. Determine the April 20xx residual income for an investment center with the following information:
Operating income for the month ended April 30, 20xx $14,900,000
Assets at March 31, 20xx 10,200,000
Assets at April 30, 20xx 13,150,000
Desired ROI 49%
Actual ROI 60%
A. $8,456,500
B. $8,780,000
C. $9,179,250
D. $8,945,750
83. For purposes of computing EVA, the minimum desired rate or return on an investment is known as
A. ROI.
B. cost of capital.
C. residual income.
D. profit margin.
84. Compute the May 20xx EVA for an investment center with the following information:
Pre-tax operating income for May 20xx $18,000,500
Income tax expense for May 20xx 5,100,000
Assets at May 31, 20xx 13,200,500
Current liabilities at May 31, 20xx 10,000,000
Long-term liabilities at May 31, 20xx 3,500,000
Minimum desired rate of return 20%