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Tropic Corporation has sales revenue of $500,000 resulting in net operating income of $54,000. Average invested assets total $600,000, and the cost of capital is

Tropic Corporation has sales revenue of $500,000 resulting in net operating income of $54,000. Average invested assets total $600,000, and the cost of capital is 6%. Calculate the return on investment if sales increase by 10% and the profit margin and invested assets remain the same.

Multiple Choice

10.8%

9.9%

6.0%

9.0%

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