=+1 Blue ple is a relatively small company with only one SBU. It manufactures wire grilles for the consumer market for cooker manufacturers and for export. Following a thor-

ough investigation by the finance department and the heads of the customer lines some facts emerged about the returns expected in each of the customer sectors. The con-

sumer sector uses £1m of the firm's capital and is expected to produce a return of 18 per cent on this capital, for the next five years, after which it will return the same as its risk-adjusted cost of capital (WACC), 15 per cent.