Question

Calculate the ROI and RI for each of the following segments and determine if a segment...

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

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