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A company had met operating income of $380,000 and average operating assets of $2,000,000. The corporation's minimum required return on new projects is 18%. The

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A company had met operating income of $380,000 and average operating assets of $2,000,000. The corporation's minimum required return on new projects is 18%. The US Division of the corporation is considering an investment of $70,000 in a project that will generate a net of $12,000. The U.S. Division currently earns a on investment of 20%. The US. manager can be evaluated based on either the division's ROI (return on investment) or the division's RI (residual income). Which of the following is true? A. The U.S. Division manager would invest in the new project only if the division's ROI is used for evaluating the division manager. B. The U.S. Division manager would invest in the new project only if the division's RI is used for evaluating the division manager. C. The U.S manager would never invest in the new project whether the division's ROI or RI is used for evaluating the division manager D. The U.S. Division manager would always invest in the new project the division's ROI or RI is used for evaluating the division manager

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