For 2012, the New Products Division of Tellis Company Had

question 110

Essay

For 2012, the New Products Division of Tellis Company had operating income of $7,000,000 and operating assets of $38,800,000. Tellis has set a target return on investment (ROI) of 14% for each of its divisions.
The New Products Division has developed a potential new product that would require $8,500,000 in operating assets and would be expected to provide $1,400,000 in operating income each year. Calculate ROI and residual income for this new product. Is the product acceptable from the company's point of view?

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Definitions:

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A model developed to describe human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

McCrae

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Fully Functioning Person

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