The Manager of the Recently Formed Oak Division of Parkes

question 82

Essay

The manager of the recently formed Oak Division of Parkes, Incorporated, is evaluating the following four investment opportunities available to the division. Parkes, Incorporated, requires a minimum return of 10 percent.
Required:

a.
Calculate the return on investment (ROI) for each investment opportunity.
b.
If only one investment opportunity can be funded and the division is evaluated based on ROI, which investment opportunity would be accepted?
c.
If Parkes, Incorporated, can fund all of the projects and wishes to achieve the best possible performance, which investments would be accepted?

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Definitions:

Net Useful Energy

The amount of energy available for use after subtracting the energy lost during generation, transmission, and conversion.

Subsurface Mining

A method of extracting minerals and ores from beneath the earth's surface, as opposed to open-pit or surface mining, often requiring tunnels or shafts.

Disease

A disorder of structure or function in a living organism that typically leads to signs or symptoms and is not a direct result of physical injury.

Groundwater Supplies

Underground sources of fresh water stored in aquifers, crucial for drinking water, irrigation, and industrial uses.