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Managerial Accounting problem - panda - 04-20-2009
Please, help to solve this!!!!! Have the exam coming up (
The Spokane Division of Cascade, Inc., has a current ROI of 22 percent. The company target ROI is 14 percent. The Spokane Division has an opportunity to invest $2,815,538 at 19 percent but is reluctant to do so because its ROI will fall to 19.4 percent. The present investment base for the division is $4,990,418.
What would be the New RI (after including the new investment)?
the answer should be 421,522
THANK YOU!!!!!!