Final answer:
The company's required rate of return calculated based on current net operating income and average operating assets is 21%, which indicates a possible typo in the provided answer options. The closest answer listed is 20%.
Step-by-step explanation:
The required rate of return can be calculated using the formula: Return on Investment (ROI) = Net Operating Income / Average Operating Assets. Given that the current net operating income is $16,800 and the average operating assets are $80,000, we can substitute these values into the formula to find the ROI.
ROI = $16,800 / $80,000 = 0.21 or 21%.
The required rate of return is equal to the ROI, so the correct answer is option 1) 20.8%.
The question seeks to determine the company's required rate of return calculated from the given financial figures, which include current net operating income and average operating assets. To calculate the required rate of return on these operating assets, the net operating income is divided by the average operating assets. In this case, the required rate of return is 21% (16,800 / 80,000).
However, this result doesn't match any of the provided options directly, suggesting a possible typo in the question. Given the information, we can assess that the closest answer would be option 2) 20%. It is imperative to note that actual calculations should conform exactly to provided values, hence the student may need to verify the data or question.