GB519_Unit_1_Case_Study

GB519_Unit_1_Case_St - Running Head GB519 UNIT ONE CASE STUDY Case Study 53 ROI Residual Income and EVA Jeanne Tarrant Kaplan University GB 519

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Running Head: GB519 UNIT ONE CASE STUDY 1 Case Study 53 - ROI, Residual Income, and EVA Jeanne Tarrant Kaplan University GB 519 Measurement and Decision Making
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GB519 UNIT ONE CASE STUDY 2 Abstract This case studies the implications and options of cost benefit analysis which is used for business planning and decision making. Elaine Shumate, the lead manager for this project, has the task of summarizing and comparing two scenarios for the board’s review. While she potentially has a great deal to gain should the MIP project move forward, she must also take care to present a balanced and justifiable report. This case analysis will explore the financial metrics that are most important for the report as well as the ethical grounding necessary for the presentation.
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GB519 UNIT ONE CASE STUDY 3 Case Study 53 – ROI, Residual Income, and EVA In order for Elaine Shumate to prepare her presentation which Blake will take to the board, she will need to calculate the ROI for both the preliminary and subsequent estimates of the income projections for the molecular identification process which her company is developing. In the first case the records indicated operating income was expected to be $25 million. With this projection and the estimated research and development costs of $140 million, the ROI would be 25/140 = .1786, rounded up to 18%.
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This note was uploaded on 07/20/2011 for the course BUS 250 taught by Professor Barrie during the Spring '10 term at Kaplan University.

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GB519_Unit_1_Case_St - Running Head GB519 UNIT ONE CASE STUDY Case Study 53 ROI Residual Income and EVA Jeanne Tarrant Kaplan University GB 519

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