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Division As ROI is 20%, and Bs is 10%. The company pays each division manager a bonus based on his or her divisions ROI. Discuss
Division As ROI is 20%, and Bs is 10%. The company pays each division manager a bonus based on his or her divisions ROI. Discuss whether each division manager accept or reject a proposed project with a rate of 15%. Would either of them make a difference decision if the company evaluated managers using economic profit with a capital charge of 11%. Explain.
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