Compute the return on investment of Beta Division

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Question - Beta Division had the following information:

Asset base in Beta Division $400,000

Net income in Beta Division $50,000

Weighted average cost of capital 12%

Target ROI 15%

Margin for Beta Division 20%

If the asset base is decreased by $100,000, with no other changes, compute the return on investment of Beta Division?

Reference no: EM132509527

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