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Consider the following data from two divisions of a company, P and Q: Divisional Sales Operating Income Investment P $ 806,400 $ 384,000 $ 4,800,000
Consider the following data from two divisions of a company, P and Q: Divisional Sales Operating Income Investment P $ 806,400 $ 384,000 $ 4,800,000 Q $ 561,000 $ 330,000 $ 3,300,000 If both divisions were presented with an opportunity to invest in a project that is estimated to achieve an ROI of 8%, 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. o Neither unit will invest in the projects
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