Question
Division A had ROI of 15% last year. The manager of Division A is considering an additional investment for the coming year. What step will
Division A had ROI of 15% last year. The manager of Division A is considering an additional investment for the coming year. What step will the manager likely choose to take?
a.Reject the investment if it returns an ROI equal to 15%.
b.Accept the investment as long as its ROI is positive.
c.Reject the investment if it returns less than 15% ROI.
d.Accept the investment as long as it provides positive operating income.
e.Reject the investment if it returns more than 15% ROI.
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-0538473484, 538473487, 978-1111879044
