If invested capital is $150000 and target rate of return on investment is 16%, then target annual operating income would be
a. $27,000
b. $26,000
c. $24,000
d. $25,000
To answer this question, you must understand each answer choice in the multiple-choice above. So you will find the right answer.
A. $27,000
Wrong. Because $27,000 is a bad choice for an answer.
B. $26,000
Wrong answer Again, because $26,000 is a nonsensical answer. do not choose this answer.
C. $24,000
it is True, because $24,000 is the best and correct answer to the above question. so, choose this answer.
D. $25,000
This is also wrong, $25,000 Not completely the correct answer.
The Answer From If invested capital is $150000 and target rate of return on investment is 16%, then target annual operating income would be
So the correct answer is C i.e. $24,000. Hopefully, it can help work on your problem and can add to your insight as well.
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