Doobey, Incorporated, Has Just Formed a New Division, and the Following

question 12

Essay

Doobey, Incorporated, has just formed a new division, and the following four investment opportunities are available to the division. The firm requires a minimum return of 8 percent.
Required:

a.
Calculate the return on investment (ROI) for each investment opportunity.
b.
If you were the division manager and you were evaluated based on ROI, which investment opportunity would you accept?
c.
If you were president of Doobey, Incorporated, which projects would you want the division to accept?

Understand the concept of efficiency in economics.

Differentiate between empirical and theoretical aspects of economics.

Comprehend the impact of external factors on economic indicators and outcomes.

Grasp the significance of testing economic theories with data (empirical economics).

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Definitions:

Ocean Dumping

refers to the disposal of waste materials into the ocean, including pollutants like plastics, industrial waste, and radioactive materials, which can severely affect marine life and ecosystems.

Sewage Sludge

A semi-solid byproduct from the treatment processes of municipal wastewater, containing both nutrients and contaminants and is often repurposed as fertilizer.

Industrial Waste

The by-products and waste materials produced by industrial activities, which can be hazardous to the environment and human health if not properly managed.

Seabirds

Birds that are adapted to life mainly within the marine environment, including gulls, albatrosses, and penguins, often with webbed feet or wings adapted for swimming.