Solution-Compute the roi and ri for this division

Compute the roi and ri for this division

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Reference no: EM13513657

The Pip division has the following operating data:

Operating assets	$200,000
Operating income	$ 50,000
Minimum required rate of return	16%

1. Compute the ROI and RI for this division.

2. Assume that the Pip division is presented with an investment project yielding a 20 percent return on its investment requiring a cash outlay of $30,000. Would the manager of the Pip division accept this investment under the ROI approach? How about under the RI approach?

Reference no: EM13513657

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Compute the roi and ri for this division

Reference no: EM13513657

Reference no: EM13513657

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