Problem:
You know that when expanding and investing in projects overseas as Acme plans to, it is essential to understand such things as Return on equity (ROE) and Internal rate of return (IRR).
Using Internet sources , Gather information on ROE and IRR.
(you may want to start with the websites listed below)
Return on Equity vs. Return on Capital
Return on Equity Definition
Keep Your Eye on the ROE
IRR Example
Write a two to three paragraph explanation for each of these terms.
Include the advantages and disadvantages of using the ROE and the IRR when selecting projects to invest in overseas.
Then, select two companies with the same industry. Using the annual report information available on the company's website compute the ROE for each company.
Each of these three questions need an answer of a minimum length of 2-3 paragraphs.