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Brady Division has operating income of $180,000 for the year ending December 31, 2011, assets/capital of $1,000,000 and a cost of capital of 10%. The

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Brady Division has operating income of $180,000 for the year ending December 31, 2011, assets/capital of $1,000,000 and a cost of capital of 10%. The division is considering a new investment that would add $500,000 to assets/capital and provide a 15% return annually. If return on investment is the metric used to measure performance, will the manager of the Brady Division accept the new investment? No, because the return on investment of the division decreases with the new investment. No, because the return on investment of the division increases with the new investment. Yes, because the return on investment of the division decreases with the new investment. Yes, because the return on investment of the division increases with the new investment

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