Question: Alpha Division s data are as follows: Average operating asset base $ 5 0 0 , 0 0 0 Operating income $ 6 0 ,

Alpha Divisions data are as follows:
Average operating asset base
$500,000
Operating income
$60,000
Cost of capital
14%
Target return on investment (ROI)
16%
Margin
21%
If the asset base is decreased by $120,000, with no other changes, what will Alpha Division's return on investment be?(Note: Round the answer to two decimal places.)
Group of answer choices
15.79%
10.50%
18.50%
12.55%

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