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I wanted to know how did that Asset investment answers appear as $200,000. $500,000. $200,000..... can you make clear the format? Company A is a
I wanted to know how did that Asset investment answers appear as $200,000. $500,000. $200,000..... can you make clear the format?
Company A is a divisionalized organization, where all its division managers are responsible for making all division decisions and the manager is responsible for those decisions made. Division X current return of investment (ROI) is 28%. Division X is presented with the following investment opportunities: Projects A B C Revenue $180,000$600,000$140,000 Operating costs $100,000$480,000$90,000 Asset Investment $200,000$500,000$200,000 Company A minimum required rate of return is 18% which is equal to the Company A average cost of capital. 8 . If you were the division manager and you were evaluated based on ROI, which projects would you accept? If you were the corporate finance director which projects would you accept? Project A is more protitableStep by Step Solution
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