A shortcoming of return on investment $($ROI$)$ is that it may not lead managers to accept good investment opportunities if

ROI of the investment is higher than the present ROI of the division.

the ROI of the investment is the same as the present ROI of the division.

the ROI of the investment is lower than the present ROI of the division.

None of the answers is correct. Which of the following might cause a materials variance?

Failing to take purchase discounts.

Using a better grade of raw material.

Changes in the market supply for the raw materials.

All of the above.If the net present value of a proposed project is positive, then the actual rate of return

is higher than the cost of capital.

is lower than the cost of capital.

is equal to the cost of capital.

is negative.