The Tandem division of Great Adventures Cycles Company had the following results last year (in thousands) Sales $ 4,000,000 operating income $ 480,000 total assets $ 2,000,000 current liabilities $ 300,000 Management 's target rate of return is 10 and the weighted average cost of capital is 8 Its e...

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The Tandem division of Great Adventures Cycles Company had the following results last year (in thousands). Sales

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The Tandem division of Great Adventures Cycles Company had the following results last year (in thousands).

Sales	$ 4,000,000
operating income	$ 480,000
total assets	$ 2,000,000
current liabilities	$ 300,000

Management's target rate of return is 10% and the weighted average cost of capital is 8%. Its effective tax rate is 40%.

What is the return on investment (ROI) of the Tandem division?

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Managerial Accounting

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Authors: Susan V. Crosson, Belverd E. Needles

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Posted Date: May 16, 2023 07:56 AM

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The Tandem division of Great Adventures Cycles Company had the following results last year (in thousands). Sales

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