An Investment Center Manager Is Considering Three Possible Investments

question 128

Essay

An investment center manager is considering three possible investments. The company's required return is 10%. The required asset investment, controllable margins, and the ROIs of each investment are as follows:
The investment center is currently generating an ROI of 23% based on $1,200,000 in operating assets and a controllable margin of $276,000.
Instructions
If the manager can select only one project, determine which one is the best choice to increase the investment center's ROI. Compute how much the investment center's ROI will be if the manager selects your recommendation.

Grasp the importance of asking the right types of questions, including open-ended questions during interviews.

Comprehend the importance of active listening and reflection in the interviewing process.

Recognize the value of design thinking as an entrepreneurial skill in addressing complex challenges.

Understand the impact of race and gender on employment opportunities and promotions.

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Definitions:

Moral Leadership

A situation in which the leader takes a moral stance on an issue, and convinces others to do the same.

Ethical Climate

A work environment's set of moral values, practices, and beliefs that guide behavior and decisions within an organization.

Whistleblower

An employee who discloses organizational wrongdoing to parties who can take action.

Virtuous Circle

The idea that corporate social performance and corporate financial performance feed and reinforce each other.