Problem
The production manager in Coronado's business unit pitched an idea to her, suggesting their unit would generate $51,000 of new sales this year by purchasing a new piece of equipment with a 5-year useful life. Expenses to support these additional sales would total 45% of new sales (before depreciation). If this asset will cost $2 5,000 (and has no salvage value), should Coronado move forward with this investment if she is evaluated based on her division's ROI {which is typically 12%)?