Question: Beta division had the following information:. Asset base in beta division $400,000, operating income in beta division $ 50,000, cost of capital 12%,. Target ROI

Beta division had the following information:. Asset base in beta division $400,000, operating income in beta division $ 50,000, cost of capital 12%,. Target ROI 15%,. Margin for beta division 29%. If the asset base is decreased by $100,000, with no other changes the return on investment of beta division will be?

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