As the manager of Losen Division of McCarthy Corporation, you are interested in determining the division's return on investment. As division manager, you have no control over financing assets, but you control acquisition and disposition of assets. The division controller has given you the following data to aid you in calculating return on investment: (See attached).
What method would be most appropriate for calculating the division's return on investment (ROI)? Using this method, what is ROI for the current year?
The solution explains how to calculate the return on investment in an attached Excel file.