6. Top management measures your division's performance by calculating the division's return on investment (ROI), defined as
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6. Top management measures your division's performance by calculating the division's return on investment (ROI), defined as division- operating income per period divided by division assets. Your division has done quite well lately; its ROI is 30 percent. You believe the division should invest in a new production process, but a colleague disagrees, pointing out that because the new investment's first-year ROI is only 25 percent, it will hurt performance. How would you respond?
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