Question: The current controllable margin for Claremont Division is $ 6 1 6 0 0 . Its current operating assets are $ 2 0 0 0

The current controllable margin for Claremont Division is $61600. Its current operating assets are $200000. The division is considering purchasing equipment at the beginning of the year for $61400 that will increase annual controllable margin by an estimated $10000. If the equipment is purchased, what will happen to the return on investment for Claremont Division? (Round answer to nearest cent)
a decrease of 23.5% a decrease of 3.4% a decrease of 8.1% an increase of 16.2%

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