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Hardcastle Ltd. had sales of $3 000 000 and net operating income of $900 000. Operating assets during the year averaged $1 500 000. The
Hardcastle Ltd. had sales of $3 000 000 and net operating income of $900 000. Operating assets during the year averaged $1 500 000. The manager of Hardcastle is considering the purchase of a new machine which is expected to increase average operating assets by 8 per cent.
If the new machine is purchased, the companys new return on investment (ROI) would be:
Group of answer choices
57.1 per cent
190.5 per cent
55.6 per cent
50.8 per cent
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