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  3. for 2012, the new products division, of testar com

For 2012, the New Products Division, of Testar Company, had operating income of $9,700,000 and...

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Accounting

For 2012, the New Products Division, of Testar Company, had operating income of $9,700,000 and operating assets of $46,500,000. The New Products Division has developed a potential new product that would require $10,200,000 in operating assets and would be expected to provide $3,100,000 in operating income each year. Testar has set a target return on investment (ROI) of 21% for each of its divisions. Assuming that the new product is put into production, can the ROI be calculated? If so calculate the division's ROI.

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