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Align Division Is One of the Divisions of DynaCore

Question 127

Multiple Choice

Align Division is one of the divisions of DynaCore.Align's invested capital is $420,000.Last year, Align generated NOPAT of $64,260 on sales of $756,000.Which one of the following correctly calculates Align Division's return on investment using the two components of return on investment?


A) $64,260 ÷ $756,000
B) 11.76% × 0.56
C) $4,260 ÷ $756,000
D) 8.5% × 1.80

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