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    rrusche's Avatar
    rrusche Posts: 6, Reputation: 1
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    #1

    Dec 13, 2007, 08:53 AM
    Return on investment
    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's Avatar
    NeedKarma Posts: 10,635, Reputation: 1706
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    #2

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