Bill Rubble, president of Melinco Company, reviewed a proposal for a project investment that was submitted by
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Bill Rubble, president of Melinco Company, reviewed a proposal for a project investment that was submitted by the vice president of production. Bill attached a note to the proposal that said, "Please recalculate this proposal-adjust the rate of return by \(2 \%\) to compensate for the higher risk involved." Should the vice president increase or decrease the rate of return when recalculating the proposal?
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Managerial Accounting Information For Decisions
ISBN: 9780324222432
4th Edition
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill
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