Suppose each division is assessed a capital charge based on


Question: Simple ROI and Economic Profit Calculations Consider the following data:

1406_Division.png

1. Prepare a similar tabular presentation, filling in all blanks.

2. Suppose each division is assessed a capital charge based on a cost of capital of 10% of invested capital. Compute the economic profit for each division.

3. Which division is the best performer? Explain.

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Microeconomics: Suppose each division is assessed a capital charge based on
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