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Benson Technologies, Inc. has three divisions. Benson has a desired rate of return of 12.5 percent. The operating assets and income for each division are
Benson Technologies, Inc. has three divisions. Benson has a desired rate of return of 12.5 percent. The operating assets and income for each division are as follows Operating Divisions Printer Copier Fax Operating Income $ 98,610 98,280 56,940 $253,830 Assets $ 570,000 840,000 390,000 $1,800,000 Total Benson headquarters has $123,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROIs Divisions Printer Copier Expected ROIs for Additional Investments 14 , 0% 13. 0% 12. 0% Fax Required a-1. Calculate the ROI for each division a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $123,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $123,000 of investment funds? d. Which division offers the best investment opportunity for Benson
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