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QUESTION 28 Divisions X and Y of a company are considering a project that will earn a 12% ROI. The following information is given: Division

QUESTION 28

  1. 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: 15%

    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 rejects, Division Y rejects.

    B.

    Division X accepts, Division Y accepts.
    C.

    Division X rejects, Division Y accepts.
    D.

    Division X accepts, Division Y rejects.

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