economics

posted by .

Investors have set the following expectations for profitability and earnings:

ROI first year must be at least 17%

Turnover in the first year is budgeted at DKK 3,400,000, oo excl. VAT and the total investment
Amounts to DKK 4.000.000, oo excl. VAT.

1.1 How much profit should be 1st degree years if the rates of return should be 17%.

During the first 5 years, the rates of return increase to at least 22%. This means that there must be improvements in both earnings as capital care.

1.2 Give 3 possible improvements that will affect earning capacity and thus the level of profits.

1.3 Give 3 possible improvements that will affect the alignment of capital and thus the asset turnover rate.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    Suppose that the average earnings for high school graduates is $25,000, the tuition, fees, and books for typical year of college total $10,000 and that a college degree takes 5 years. a) How large must the present value of the increment …
  2. Cost Accounting

    Katherine Company's Sales Budget Has The Following Unit Sales Projection For Each Quarter Of The Calendar Year 2009. January -March 540,000 April-June 680,000 July-September 490,000 October-December 550,000 Total 2,260,000 Sales for …
  3. managerial economics

    I have no idea what e=a+bn E is the total earnings of the motion picture industry measured in dollars per year and N is the number of tickes sold in December. First question: How well do movie ticket sales in December explain the level …
  4. homework

    Ms. Brown estimates the following cash flow for the first five years of operations, with cash flow leveling off in year 5. Year Cash flow Year 1 $695,000 Year 2= 876,250 Year 3= 1,057,500 Year 4= 1,238,750 Year 5= 1, 420,000 Calculate …
  5. Accounting

    Nafari Company's sales budget has the following unit sales projection for each quarter of the calendar year 2011. January -March 1,080,000 April-June 1,360,000 July-September 980,000 October-December 1,100,000 Total 4,520,000 Sales …
  6. Accounting

    Nafari Company's sales budget has the following unit sales projection for each quarter of the calendar year 2011. January -March 1,080,000 April-June 1,360,000 July-September 980,000 October-December 1,100,000 Total 4,520,000 Sales …
  7. college alg help!

    cannot figure a way to do this problem: An investment of $98,000 was made by a business club. The investment was split into three parts and lasted for one year. The first part of the investment earned 8% interest, the second 6%, and …
  8. Precalc

    An investment of $37,000 was made by a business club. The investment was split into three parts and lasted for one year. The first part of the investment earned 8% interest, the second 6%, and the the third 9%. Total interest from …
  9. Economics

    A $90,000 investment is made. Over a 5 year period, a return of $30,000 occurs at the end of the first year. Each successive year yields a return that is $3,000 less than the previous year's return. If money is worth 5 percent, use …
  10. MATH for Business

    Linear Programming-Investment Strategy Invest at most $90,000 in securities in the form of corporate stocks. Options into three groups of stocks: blue-chip stocks will yield 3% return (dividends and capital appreciation) within a year, …

More Similar Questions