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Quebec's division of Franks restaurants is an investment centre. The manager is considering two possible expansion alternatives. The required investments, controllable margins, and the
Quebec's division of Franks restaurants is an investment centre. The manager is considering two possible expansion alternatives. The required investments, controllable margins, and the ROIs of each expansion project are as follows: Project Power Super Investment $75,000 330,000 Controllable Margin $15,000 56,100 ROI 20% 17% The investment centre is currently generating an ROI of 15% based on $700,000 in operating assets and a controllable margin of $105,000. Which one of following projects will increase Quebec's division ROI? O a. both Power and Super O b. only Power O c. only Super O d. neither Super nor Power
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