Question
7 (2 Marks) On the last day of the financial year a division has operating assets with a total carrying amount (book-value) of Rs.300,000. The
7 (2 Marks) On the last day of the financial year a division has operating assets with a total carrying amount (book-value) of Rs.300,000. The return on investment for the division is 24%. The division manager, Hassam wants to show better ROI to get bonus included in his salary. He is considering selling a non-current asset immediately before the year end. The non-current asset has a carrying amount of Rs.15,000 and will sell for a profit of Rs.5,000. What would be the Hassam's division's return on investment (ROI) immediately after the sale of the asset at the end of the year? Give your answer to 1 decimal place
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