Hardcastle ltd had sales of 3 000 000 and net operating


Question - Hardcastle Ltd. had sales of $3 000 000 and net operating income of $900 000. Operating assets during the year averaged $1 500 000. The manager of Hardcastle is considering the purchase of a new machine which is expected to increase average operating assets by 5 per cent.

If the new machine is purchased, the company's new return on investment (ROI) would be:

196.9 per cent

57.1 per cent

190.5 per cent

50.8 per cent

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Accounting Basics: Hardcastle ltd had sales of 3 000 000 and net operating
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