NUBD is evaluating its X Division, an investment center. The division has a P50,000 controllable margin and P300,000 of sales. How much will NUBD’s average operating assets be when its return on investment is 20%?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 7P: Your division is considering two investment projects, each of which requires an up-front expenditure...
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NUBD is evaluating its X Division, an investment center. The division has a P50,000 controllable margin and P300,000 of sales. How much will NUBD’s average operating assets be when its return on investment is 20%?

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