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Business, 22.11.2019 05:31 ripbobbyjackson6701

Dingo division’s operating results include: controllable margin of $150,000, sales totaling $1,200,000, and average operating assets of $500,000. dingo is considering a project with sales of $100,000, expenses of $86,000, and an investment of average operating assets of $200,000. dingo’s required rate of return is 9%. should dingo accept this project? a) no, roi will decrease to 7%. b) no, the return is less than the required rate of 9%. c) yes, roi still exceeds the cost of capital. d) yes, roi will drop by 6.6% which is still above the minimum required rate of return.

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