Question: Given the following information for the Reits Division: Based on the above information, the current Return on investment (ROI) is 12.5%. Reits has an option

Given the following information for the Reits Division: Based on the above information, the current Return on investment (ROI) is 12.5%. Reits has an option to make an additional investment that would add $100,000 to the operating assets. It would generate an additional $50,000 in sales revenue with no additional expenses. Required: Calculate the margin, turnover and ROI, with the additional investment. Should Reits accept this option? (Round off all computations to 3 decimal places.) Average operating assets $500,000 Sales revenue $725,000 Expenses $662,500

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