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View Full Version : Return on investment


rrusche
Dec 13, 2007, 08:53 AM
Stickforth Company has the following information about its two divisions. The divisions are investment centers. Stickforths required rate of return is 11%. Blue DivisionNOPAT-$15,000,000; Sales--$100,000,000; Assets--$200,000,000; Gray DivisionNOPAT--$25,000,000; Sales--$125,000,000; Assets--$200,000,000. An opportunity is available that yields an expected income (NOPAT) of $1,000,000 on an investment of $10,000,000. If the divisions are evaluated based on return on investment, which will accept the opportunity?

NeedKarma
Dec 13, 2007, 09:37 AM
No one will do your homework for you here.