Question: The current controllable margin for Henry Division is $123000. Its current operating assets are $300000. The division is considering purchasing equipment for $90000 that will

The current controllable margin for Henry Division is $123000. Its current operating assets are $300000. The division is considering purchasing equipment for $90000 that will increase annual controllable margin by an estimated $5000. If the equipment is purchased, what will happen to the return on investment for Henry Division?

An increase of 4.07%

A decrease of 11.51%

A decrease of 8.18%

A decrease of 8.10%

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