Multiple Choice
A division of a firm has a net profit of $640 000 before imputed interest and a residual income of $240 000. If a rate of 10 per cent is used to compute imputed interest, calculate the division's return on investment (rounded to a whole number) .
A) 4%
B) 10%
C) 16%
D) 35%
Correct Answer:
Verified
Correct Answer:
Verified
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