|1. |[pic] |
|2. |[pic] |
|3. |[pic] |
Exercise 11-2 (10 minutes)
|Average operating assets |£2,200,000 |
|Net operating income |£400,000 |
|Minimum required return: | 352,000 |
|16% × £2,200,000 | |
|Residual income |£ 48,000 |
Exercise 11-6 (15 minutes)
|1. |[pic] |
|2. |[pic] |
Exercise 11-6 (continued)
|3. |[pic] |
Exercise 11-7 (20 minutes)
1. ROI computations:
[pic]
Perth: [pic]
Darwin: [pic]
| 2. | |Perth |Darwin |
| |Average operating assets |$3,000,000 |$10,000,000 |
| |Net