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Problem #4 Coca Cola has 3 divisions. It uses a 10.9 percent required rate of return. Its Dasani Division has an invested capital amounting to
Problem #4 Coca Cola has 3 divisions. It uses a 10.9 percent required rate of return. Its Dasani Division has an invested capital amounting to $998,000 and reported profits of $122,000 during the current year. The division manager is considering whether expanding the shipping docks at an estimated cost of $182,000 will enhance the division. The expansion is expected to increase annual income by an estimated $18,100. a. Calculate the Dasani Division's ROI if the docks are expanded. What will the Dasani Division's manager most likely do if he is evaluated using ROI? Briefly justify why the manager will take that action
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