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In calculating invested capital, an adjustment is made for current liabilities. Why is this adjustment made? This action removes amounts that divisional managers are unable

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In calculating invested capital, an adjustment is made for current liabilities. Why is this adjustment made? This action removes amounts that divisional managers are unable to control. The amounts represent additional assets the company can invest. This helps to promote goal congruence among divisions. These amounts do not have a cost of capital associated with them. a

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