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The production manager in Wildhorse's business unit pitched an idea to her, suggesting their unit...

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Accounting

imageThe production manager in Wildhorse's business unit pitched an idea to her, suggesting their unit would generate $54,000 of new pt History is year by purchasing a new piece of equipment with a 5-year useful life. Expenses to support these additional sales would total 50% of new sales (before depreciation). If this asset will cost $25,000 (and has no salvage value), should Wildhorse move forward with this investment if she is evaluated based on her division's ROI (which is typically 12%)? (Round answer to 1 decimal place, e.g. 15.2%.) ROI % Wildhorse move forward with this investment.

The production manager in Wildhorse's business unit pitched an idea to her, suggesting their unit would generate $54,000 of new is year by purchasing a new piece of equipment with a 5-year useful life. Expenses to support these additional sales would total 50% of new sales (before depreciation). If this asset will cost $25,000 (and has no salvage value), should Wildhorse move forward with this investment if she is evaluated based on her division's ROI (which is typically 12\%)? (Round answer to 1 decimal place, e.g. 15.2\%.) ROI % Wildhorse move forward with this investment

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