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The following is partial information for Charleston Company's most recent year of operation. It manufactures lawn mowers and categorizes its operations into two divisions: Bermuda
The following is partial information for Charleston Company's most recent year of operation. It manufactures lawn mowers and categorizes its operations into two divisions: Bermuda and Midiron. Required: Without making any calculations, determine whether each division's return on investment is above or below Charleston's hurdle rate. Determine the missing amounts in the preceding table. (Round your return on investment answers to one decimal place. Round "Investment turnover" answers to 2 decimal place.) What is Charleston s hurdle rate? (Round your answers to 1 decimal place.) Suppose Charleston has the opportunity to invest additional assets to help expand the company's market share The expansion would require an average investment of $2,800,000 and would generate $140,000 in additional income Calculate Return on Investment
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