Question: SkyBound Airlines provided the following information about its two operating divisions: Passenger Cargo Operating profit $40,000 $50,000 Investment $250,000 $500,000 External borrowing rate 6% 8%

SkyBound Airlines provided the following information about its two operating divisions: Passenger Cargo Operating profit $40,000 $50,000 Investment $250,000 $500,000 External borrowing rate 6% 8% Measuring performance using return on investment (ROI), which division performed better? The Passenger division, with an ROI of 22%. The Cargo division, with an ROI of 18%. The Passenger division, with an ROI of 16%. The Cargo division, with an ROI of 10%

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