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The New Products Division of Testar Company, had operating income of $9,600,000 and operating assets of $46,400,000 during the current year. The New Products Division
The New Products Division of Testar Company, had operating income of $9,600,000 and operating assets of $46,400,000 during the current year. The New Products Division has developed a potential new product that would require $10,100,000 in operating assets and would be expected to provide $3,000,000 in operating income each year. Testar has set a target return on investment (ROI) of 21% for each of its divisions. Assuming that the new product is put into production, calculate the division's ROI. Multipie Choice 20.69% The onswer connot be determined using the information provided 22305 20.69% The onswer cannot be determined using the information provided. 223005 2970%
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