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Company A is a divisionalized organization, where all its division managers are responsible for making all division decisions and the manager is responsible for those
Company A is a divisionalized organization, where all its division managers are responsible for making all division decisions and the manager is responsible for those decisions made. Division X, an investment division, is presented with the following investment opportunities. Division X current return of investment is 28% The firm requires a minimum return of 20%. Borrowing rate (cost of capital) =15% interest; corporate tax rate =30% Instructions: a). If you were the division manager and your evaluation was based on ROI, which investment opportunities would you accept? Whv
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