Practice questions:
Film Animation Ltd wishes to expand and has £800,000 to invest. The details of two potential projects are as follows:
|
Project A
|
Project B |
|
£ |
£ |
Sales
|
318,500
|
358,000
|
Cost of sales including expenses
|
240,500
|
264,400
|
Average capital employed
|
650,000
|
780,000
|
Which project should the management choose, and why?