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Beta Division had the following information: Asset base in Beta Division $400,000 Net income in Beta Division $50,000 Weighted average cost of capital 12% Target
Beta Division had the following information:
Asset base in Beta Division
$400,000
Net income in Beta Division
$50,000
Weighted average cost of capital
12%
Target ROI
15%
Margin for Beta Division
20%
If the asset base is decreased by $100,000, with no other changes, the return on investment of Beta Division will be
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