Question: The current controllable margin for Henry Division is $108000. Its current operating assets are $300000. The division is considering purchasing equipment for $90000 that will
The current controllable margin for Henry Division is $108000. Its current operating assets are $300000. The division is considering purchasing equipment for $90000 that will increase annual controllable margin by an estimated $15000. If the equipment is purchased, what will happen to the return on investment for Henry Division?
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| A decrease of 14.46% |
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| A decrease of 4.46% |
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| A decrease of 7.60% |
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| An increase of 13.89% |
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