Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) :
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands) .

Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-What is the Tandem division's Return on Investment (ROI) ?

A) 7.50%
B) 12.00%
C) 24.00%
D) 200.00%