7.5

Question 5 of 12 VI ew Policies Current Attempt in Progress Peule Boothe. president of Sheffield Cor;uyration. has mandated a minimum B" return on it-vestment for any project undertaken by the cornperr,'_ Given the comperMs decentra lization. Peule leaves all i mzestment decisions to the divisional menegers as long as they anticipate a minimum rate of return of at least ICE The Energy' Drinks division. urzer the direction of menager Martin Koch. has achieved e return on i twestrrnt for the Zest three years. This year is not expected to be different from the past three. Keh has just received e proposal to imwest S3.OOO.COO in a new line of energy drirJs that is expected to generate S39QOCO in operating I ru:omre_ Calculate the return on itwestment expected on the new lime of energy' drina (Round answer to 1 decimal place. ea. 5.1K) Retum on Investment eTextbaok and Media Attempts: O of 3 used