The current controllable margin for Claremont Division is $62900. Its current operating assets are $200000....
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The current controllable margin for Claremont Division is $62900. Its current operating assets are $200000. The division is considering purchasing equipment at the beginning of the year for $60800 that will increase annual controllable margin by an estimated $10000. If the equipment is purchased, what will happen to the return on investment for Claremont Division? (Round answer to nearest cent)
a) an increase of 15.9%
b) a decrease of 8.1%
c) a decrease of 3.5%
d) a decrease of 23.1%
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