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Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: This year, the company
Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: This year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: The company's minimum required rate of return is 15%. 3. What is last year's return on investment (ROl)? 10-a. If Westerville's chief executive officer will earn a bonus only if her ROI from this year exceeds her ROI from last year, would she pursue the investment opportunity? Yes No 10-b. Would the owners of the company want her to pursue the investment opportunity? Yes No
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