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Divisions X and Y of a company are considering a project that will earn a 12% ROI. The following information is given: Division X: ROI
Divisions X and Y of a company are considering a project that will earn a 12% ROI. The following information is given:
Division X: ROI right now, without the given project: 15%
Minimum required rate: 10%
Division Y: ROI right now, without the given project: 10%
Minimum required rate: 14%
If the divisions objective is to maximize ROI, would these divisions accept or reject their projects?
Division X accepts, Division Y rejects. | ||
Division X accepts, Division Y accepts. | ||
Division X rejects, Division Y accepts. | ||
Division X rejects, Division Y rejects. |
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