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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Revision Q- ROI and RI
return for new project 15,000/100,00=15%
15% < 16%, therefore co should reject this project
for division
ROI-without project 100,000/800,00=12.5%
ROI-with project (100,000+15,000)/(800,000+100,000)=12.8%
in this case, division manger would like accecpt
RI-without project pofit 100,000
less: interest 16% x 800,000 -128,000
profit/loss -28,000
RI-with project profit 115,000
less: intersst -144,000
P/L -44,000
pls correct me.
