The Aberdeen Fishing Company operates five trawlers (fishing boats) out of Aberdeen, Scotland….

The Aberdeen Fishing Company operates five trawlers (fishing boats) out of Aberdeen, Scotland. The boats are of different sizes and incur different operating expenses during the year. The following table describes the operating data and value of each boat.

The cost of capital for the company is 10 percent.

a. What is the ROI of each boat, using the book value of the investment in each boat?

b. What is the ROI of each boat, using the market value of the investment in each boat?

c. What is the residual income of each boat, using the book value of each boat?

d. What is the residual income of each boat, using the market value of each boat?

e. Which trawler had the best year?