Beta Division Had the Following Information If the Asset Base Is Decreased by $100,000,with No Other

question 49

Multiple Choice

Beta Division had the following information: $$\begin{array} { l r } \text { Asset base in Beta Division } & \$ 400,000 \\\text { Net income in Beta Division } & \$ 50,000 \\\text { Weighted average cost of capital } & 12 \% \\\text { Target RoI } & 15 \% \\\text { Margin for Beta Division } & 20 \%\end{array}$$ If the asset base is decreased by $100,000,with no other changes,what will be the return on investment of Beta Division?

• A)16.7%
• B)62.5%
• C)100.0%
• D)600.0%

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Definitions:

Distance

The measurement of space between two points, which can be quantified in units like meters, miles, or light-years, depending on the context.

Specific Gravity

A measurement of the density of a substance compared to water. Specific gravity tests are performed on battery acid and coolant.

Model Year

The year assigned to a vehicle by its manufacturer indicating the marketing period it was made for, which may not necessarily coincide with the year it was manufactured.

Vehicle Identification Number

A unique code, including a serial number, used by the automotive industry to identify individual motor vehicles.