Consider the information in Brief Exercise 25.5. Assume that the manager of division 2 has the opportunity

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Consider the information in Brief Exercise 25.5. Assume that the manager of division 2 has the opportunity to purchase a new piece of equipment for $3,000,000 that would increase earnings by $300,000 per year. Show the impact of this purchase on division 2's ROI. Would the manager of division 2 be motivated to undertake the investment? Why or why not?
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Financial and Managerial Accounting the basis for business decisions

ISBN: 978-1259692406

18th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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