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Question - The current income for a subunit is $36,000 on sales revenues of $360,000. Its current invested capital is $200,000. The subunit's invested capital will be reduced $20,000, and the reduction will not change the subunits' income or sales revenues. If the reduction in invested capital occurs, what will be the new return on investment (ROI) for the subunit?
a) 20%
b) 19.08%
c) 22%
d) 16%
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