Sacha Works for an Organization That Follows a Decentralized Model

Multiple Choice

Sacha works for an organization that follows a decentralized model. Erin, the production manager of her business unit has come to Sacha to discuss the possibility of purchasing a new piece of equipment. Erin has indicated this new equipment could generate $23,500 of sales, and the expenses (after depreciation) to support it would be 70% of the new sales. After speaking to a supplier, Erin learns that the new equipment can be purchased for $15,750. What is the Return on Investment for the new equipment?

A) 30.00%
B) 44.76%
C) 95.74%
D) 104.44%