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5 pts In the year 2017, Segment A of a company had beginning and ending total assets of $10,000,000, and had operating income of
5 pts In the year 2017, Segment A of a company had beginning and ending total assets of $10,000,000, and had operating income of $2,000,000. The company requires a minimum rate of return of 10% for Segment A. Out of the following combinations of potential projects and performance evaluation methods, which would cause the segment manager's incentives to be misaligned with the desires of the company? (Assume any of the potential projects would be accepted in the middle of the year 2018, and so would only generate half of the annual income during 2018). OA project that would add $1,000,000 in total assets, generate annual operating income of $150,000, and the manager is evaluated based on residual income OA project that would add $1,000,000 in total assets, generate annual operating income of $250,000, and the manager is evaluated based on residual income OA project that would add $1,000,000 in total assets, generate annual operating income of $150,000, and the manager is evaluated based on return on investment A project that would add $1,000,000 in total assets, generate annual operating income of $250,000, and the manager is evaluated based on return on investment
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