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Paula Boothe, president of the Blue Corporation, has mandated a minimum 8 % return on investment for any project undertaken by the company. Given the
Paula Boothe, president of the Blue Corporation, has mandated a minimum return on investment for any project undertaken by the
company. Given the company's decentralization, Paula leaves all investment decisions to the divisional managers as long as they
anticipate a minimum rate of return of at least The Energy Drinks division, under the direction of manager Martin Koch, has
achieved a return on investment for the past three years. This year is not expected to be different from the past three. Koch has
just received a proposal to invest $ in a new line of energy drinks that is expected to generate $ in operating income.
a
Calculate the return on investment expected on the new line of energy drinks. Round answer to decimal place, eg
what is the Return on Investment
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