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Division Nano reported: Sales Net Operating Income Average Operating Assets Minimum required rate of return $24.950,000 1,805.000 6,000,000 16% 1. What is the division's ROI,
Division Nano reported: Sales Net Operating Income Average Operating Assets Minimum required rate of return $24.950,000 1,805.000 6,000,000 16% 1. What is the division's ROI, rounded to the nearest whole percent? 2. The division manager is considering a $1,000,000 investment in equipment which will add $170,000 to NOI. If the manager is evaluated based on the division's ROI, would he make the investment? Support your answer with the new ROI computation 3. Would the company want the division manager to make the investment? Why or why not
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