Jasper Recording Studio Has a Current Return on Investment of 10

question 44

Multiple Choice

Jasper Recording Studio has a current return on investment of 10% and the company has established an 8% minimum rate of return for the division.The division manager has two investment projects available, for which the following estimates have been made: Project A - annual controllable margin = $24,000, operating assets = $400,000
Project B - annual controllable margin = $60,000, operating assets = $550,000
Which project should be funded?

• A)both projects
• B)Project A
• C)Project B
• D)neither project

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