The Current Controllable Margin for Henry Division Is $93000

question 103

Multiple Choice

The current controllable margin for Henry Division is $93000. Its current operating assets are $300000. The division is considering purchasing equipment for $90000 that will increase annual controllable margin by an estimated $15000. If the equipment is purchased what will happen to the return on investment for Henry Division?

• A) An increase of 16.1%
• B) A decrease of 13.3%
• C) A decrease of 3.3%
• D) A decrease of 7.2%

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Definitions:

RC Parallel Circuit

An electrical circuit composed of resistors (R) and capacitors (C) connected in parallel, affecting the total impedance seen by an alternating current (AC) source.

R

A symbol commonly used to represent resistance in electrical circuits, measured in ohms (Ω).

Reactive Power

The portion of electricity that oscillates between the source and load in an AC system, essential for maintaining the voltage to deliver active power (work) but itself does no work.

RC Parallel Circuit

A circuit configuration where a resistor (R) and a capacitor (C) are connected alongside each other and share the same two nodes, resulting in a specific impedance.