Defined division operating income divided by division assets

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Reference no: EM131563470

Top management measures your division's performance by calculating the division's return on investment (ROI), defined as division operating income divided by division assets. Your division has done quite well recently; its ROI 30 percent. You the division should invest in a new production process, but a colleague disagrees, pointing out that because the new investment's first-year ROI is only 25 percent, it will hurt performance. How would you respond?

Reference no: EM131563470

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