Top management measures your division's performance by calculating the division's return on investment, 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?

AppendixLO1