[Solved] LeSudRetailershasacurrentreturnoninvestme

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LeSudRetailershasacurrentreturnoninvestmentof10%andthecompanyhasestablishedan8%minimumrateofreturnforthedivision.Thedivisionmanagerhastwoinvestmentprojectsavailable,forwhichthefollowingestimateshavebeenmade: ProjectA-Annualcontrollablemargin=$24,000,operatingassets=$400,000 ProjectB-Annualcontrollablemargin=$60,000,operatingassets=$550,000 Whichprojectshouldbefunded? BothprojectsProject Project A Project B Neitherproject

LeSudRetailershasacurrentreturnoninvestmentof10%andthecompanyhasestablishedan8%minimumrateofreturnforthedivision.Thedivisionmanagerhastwoinvestmentprojectsavailable,forwhichthefollowingestimateshavebeenmade:

ProjectA-Annualcontrollablemargin=$24,000,operatingassets=$400,000

ProjectB-Annualcontrollablemargin=$60,000,operatingassets=$550,000

Whichprojectshouldbefunded?

BothprojectsProject

Project A

Project B

Neitherproject

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