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oleasehelp22 Required information Axel Corporation (which has a weighted-average cost of capital of 12%) has two divisions with the following information: Beta Division Cal Division
oleasehelp22
Required information Axel Corporation (which has a weighted-average cost of capital of 12%) has two divisions with the following information: Beta Division Cal Division Total Assets Current Liabilities After-Tax Operating Income ROI $720,000 $220,000 $105,000 15% Multiple Choice $550,000 $110,000 $110,000 20% Each manager is offered an investment project opportunity that would increase each division's investment base by $10,000 and generate an additional profit for each division of $1,800. Which of the following is true? If the managers are evaluated based on their division's ROI, Beta may decide to accept the project but Cal would most likely reject it. If the compay rewards managers for accepting any project with positive residual income, and the company's target return for projects is 15%, both division managers would reject the project. If the managers are evaluated based on their divison's ROI, Cal would most likely accept the project but Beta would most likely reject it. Help If the company rewards managers for accepting any project with positive residual income, and the company's target return for projects is 20%, both division managers would accept the project. Save & Exit Sub
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