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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: 1596 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? A Division X accepts. Division Y accepts. B. Division X rejects, Division Y accepts. C Division X accepts. Division Y rejects. D. Division X rejects. Division Y rejects. QUESTION 29 A company is evaluating performance of its four divisions. The divisions are all investment centers. The following information is given: Profit ROI Residual Income Net operating assets Division 9 $6,000,000 $100,000 $70,000 $400,000 $19,000 $720,000 $200,000 $630,000 $25,000 Which division performed the best? A Division A B. Division D C. Division D. Division B $1,000,000 $7,000,000 $500,000 Click Save and Submit to save and submit. Click Save All Answers to save all ans
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