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A company reported the following information: financial information ($) operating income investments Western division 130,000 1,500,000 Eastern division 380,000 2,000,000 project Orange 10,000 100,000 project
A company reported the following information: financial information ($) operating income investments Western division 130,000 1,500,000 Eastern division 380,000 2,000,000 project Orange 10,000 100,000 project Blue 16,000 100,000 If the company's minimum required rate of return is 15% and divisional managers are evaluated on the basis of return on investment of her/his division alone, which division will invest in project Blue, and is it good for the company as a whole? A. Western division will invest in the project, and the project is good for the company OB. both Eastern and Western divisions will invest in the project, and the project is not good for the company OC. neither division will invest in the project, and the project is not good for the company OD. Eastern division will invest in the project, and the project is good for the company O E. both Eastern and Western divisions will invest in the project, and the project is good for the company
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