Hardcastle Ltd

Multiple Choice

Hardcastle Ltd. had sales of $3,600,000 and net operating income of $900,000. 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 20%. If the new machine is purchased, the company's new return on investment (ROI) would be:

A) 190.5%
B) 60.0%
C) 200.0%
D) 50.0%