Question
Consider the following data from two divisions of a company, P and Q: P Divisional Sales Operating Income Investment $ 540,000 $ 300,000 $
Consider the following data from two divisions of a company, P and Q: P Divisional Sales Operating Income Investment $ 540,000 $ 300,000 $ 2,500,000 $ 956,800 $ 598,000 $ 4,600,000 If both divisions were presented with an opportunity to invest in a project that is estimated to achieve an ROI of 12%, what will the units likely decide? Multiple Choice Division P will invest; Division Q will not invest. Division P will invest; Division Q will be indifferent. Division P will not invest; Division Q will invest. Division P will be indifferent; Division Q will not invest. Neither unit will invest in the projects.
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