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Question 13 of Question 13 10 The North Division of World Corporation, which has income of $129,200 and an invested capital of $700,000, is
Question 13 of Question 13 10 The North Division of World Corporation, which has income of $129,200 and an invested capital of $700,000, is studying an investment opportunity that will cost $38.000 and yield a profs of $8.580 Assuming the company uses an imputed interest rate of 15%, would the investment be attractive to 1. Ovisional management f ROI is used to evaluate divisional performance? 2 Divisional management if residual income (RI) is used to evaluate divisional performance? 3. The World Corporation? Attractive to Division: RO Yes Ves 10 9 Yes No No OA OC OD OE Atractive to Division: RI Yes Attractive Company Yes No No Yes No Yes Yes No No
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