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Beta Division Had the Following Information If the Asset Base Is Decreased by $100,000,with No Other

Question 49

Multiple Choice

Beta Division had the following information:  Asset base in Beta Division $400,000 Net income in Beta Division $50,000 Weighted average cost of capital 12% Target RoI 15% Margin for Beta Division 20%\begin{array} { l r } \text { Asset base in Beta Division } & \$ 400,000 \\\text { Net income in Beta Division } & \$ 50,000 \\\text { Weighted average cost of capital } & 12 \% \\\text { Target RoI } & 15 \% \\\text { Margin for Beta Division } & 20 \%\end{array} If the asset base is decreased by $100,000,with no other changes,what will be the return on investment of Beta Division?


A) 16.7%
B) 62.5%
C) 100.0%
D) 600.0%

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