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Yorkton Corporation is a mobile phone service provided and has had reported the following results for the current year shown below. Yorkton is considering
Yorkton Corporation is a mobile phone service provided and has had reported the following results for the current year shown below. Yorkton is considering on expanding to a new division that would provide internet services. The expansion would require $500,000 in assets and is projected to increase operating income by $145,000 annually. Sales Operating Expenses Average Operating Assets 700,000 545,000 640,000 Current residual Income 65,400 Minimum required rate of return 14% Current return on investment (ROI) 28%
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