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An investment center manager is considering three possible investments The company's required return is 10 %The required assetinvestment controllable margins , and the of each
An investment center manager is considering three possible investments The company's required return is 10 %The required assetinvestment controllable margins , and the of each investment are as follows : Project Average Investment Controllable Margin AA $ 180,000 $ 55,200 160,000 39,100 240,000 89,360 The investment center is currently generating an ROI of 23 % based on $1,220,000 in operating assets and a controllable margin of $299,000 the manager can select only one project determine which is the best choice to increase the investment center's ROI by computing the investment center's ROI for each of the investment alternatives
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