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Question

Calculate the ROI and RI for each of the following segments and determine if a segment should be dropped based on

RI. Assume we want a desired minimum income of 10%.

 

Segment 1           Segment 2            Segment 3

Income   $ 180,000              $ 1,000,000           $ 500,000

Investment 2,000,000              5,000,000            2,000,000

Top Answer

return on investments is calculated by the formula income divided by investment multiplied by 100... View the full answer

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