Question: The current controllable margin for Claremont Division is $62300. Its current operating assets are $200000. The division is considering purchasing equipment at the beginning of

The current controllable margin for Claremont Division is $62300. Its current operating assets are $200000. The division is considering purchasing equipment at the beginning of the year for $60200 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)

an increase of 16.1%

a decrease of 8.2%

a decrease of 3.4%

a decrease of 23.0%

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