Question
Consider 2 divisions X and Y considering an investment outlay of Rs 100,000 each in to a new project. X expects a return of Rs
Consider 2 divisions X and Y considering an investment outlay of Rs 100,000 each in to a new project. X expects a return of Rs 16,000 and Y expects a return of Rs 11,000. The prevailing ROI's of the divisions are 18% and 11% respectively. The WACC for the Org is 13%. Evaluate if the projects should be accepted / rejected by the divisions based on ROI and RI? Which of the 2 is a better indicator and why?
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Options Futures And Other Derivatives
Authors: John C. Hull
3rd Edition
0131864793, 9780306457555
