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Le Sud Retailers has a current return on investment of 10% and the company has established an 8% minimum rate of return for the division.
Le Sud Retailers has a current return on investment of 10% and the company has established an 8% minimum rate of return for the division. The division manager has two investment projects available, for which the following estimates have been made:
Project A - Net operating income = $36,000, operating assets = $400,000
Project B - Net operating income = $60,000, operating assets = $500,000
If the manager is evaluated based on ROI, which project will get funded?
Both projects, Neither project, Project A, Project B
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