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Consider the following data from two divisions of a company, P and Q: Divisional Sales P Q 1,11 756, $3,20 000 0 Operating Income $378,
Consider the following data from two divisions of a company, P and Q: Divisional Sales P Q 1,11 756, $3,20 000 0 Operating Income $378, 506, $ 000 000 4,20 4,60 Investment $0,00 $0,00 0 0 If both divisions were presented with an opportunity to invest in a project that is estimated to achieve an ROI of 9%, what will the units likely decide? Division P will invest; Division Q will be indifferent. O Division P will be indifferent; Division Q will not invest. Division P will not invest; Division Q will invest. Neither unit will invest in the projects. Division P will invest; Division Q will not invest
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