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Paula Boothe president of the Blue Corporation, has mandated a minimum 10% return on investment...

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Accounting

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Paula Boothe president of the Blue Corporation, has mandated a minimum 10% return on investment for any project undertaken by the company. Given the company's decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 12%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 14% return on investment for the past three years. This year is not expected to be different from the past three Koch has just received a proposal to invest $ 2,000,000 in a new line of energy drinks that is expected to generate $ 260,000 in operating income. (a) Calculate the return on investment expected on the new line of energy drinks (Round answer to 1 decimal place, e.g. 5.1%) % Return on Investment e Textbook and Media Attempts: 0 of 3 used Submit Answer Save for Later

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