GreenWorld Company Wants to Increase Its ROI from 20 Per

question 16

Multiple Choice

GreenWorld Company wants to increase its ROI from 20 per cent to 25 per cent in the current year. They cannot increase operating income and sales from the previous year's levels of £50,000 and £1,200,000, respectively. To increase ROI, GreenWorld should

• A)make additional investments of £25,000.
• B)sell obsolete inventory for £10,000 and use the proceeds to pay off debts.
• C)sell obsolete inventory for £50,000 and use the proceeds to pay off debts.
• D)GreenWorld can't increase ROI.

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