Paula Boothe, president of theSheffieldCorporation, has mandated a minimum9% 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 least11%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a17% 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 $3,000,000in a new line of energy drinks that is expected to generate $390,000in operating income.

(a)

Calculate the return on investment expected on the new line of energy drinks.(Round answer to 1 decimal place, e.g. 5.1%.)

Return on Investmententer the return on investment in percentages rounded to 1 decimal place

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