Hardcastle Ltd

Multiple Choice

Hardcastle Ltd.had sales of $3 000 000 and net operating income of $800 000.Operating assets during the year averaged $1 500 000.The manager of Hardcastle is considering the purchase of a new machine which is expected to increase average operating assets by 5 per cent.If the new machine is purchased,the company's new return on investment (ROI) would be:

A) 190.5 per cent
B) 52.5 per cent
C) 196.9 per cent
D) 50.8 per cent