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13. The following information is given: Division Xs current ROI is 20%. This division is evaluated on the basis of ROI. Division Ys current ROI
13. The following information is given:
Division Xs current ROI is 20%. This division is evaluated on the basis of ROI.
Division Ys current ROI is 23%. This division is evaluated on the basis of residual income.
The companys headquarters requires 16% as the minimum required rate of return.
There is a project that will generate a 18% ROI. Will these divisions accept the project?
Division X Division Y
A. Yes Yes
B. Yes No
C. No Yes
D. No No
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