Should weightec accept the new project

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Reference no: EM132523845

Weightec Division's operating results include:

Controllable margin, $150,000

Sales revenue, $1,200,000

Operating assets, $500,000

Weightec is considering a new project with sales of $120,000, expenses of $84,000, and an investment of $180,000. Weightec's required rate of return is 15%.

Instructions:

Question 1: Should Weightec accept this new project? Fully explain why or why not. Show all workings to justify the answer.

Reference no: EM132523845

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