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Selected data for three investment centers of Going Coastal, Inc., a manufacturer of beach chairs, are given below for the previous operating period: An investment

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Selected data for three investment centers of Going Coastal, Inc., a manufacturer of beach chairs, are given below for the previous operating period: An investment opportunity has been identified that will yield a 17% return on investment for each center. The company's minimum acceptable rate of return is 15%. Which of the following statements is correct? If each manager is paid a bonus based solely on their ability to exceed the division's prior period ROI, Sun's manager would make a decision that is in the company's "best interest." Water's manager is the most effective in terms of generating sales revenue from invested capital. Sand's ROI is greater than the company's hurdle rate. If each manager is paid a bonus based solely on his ability to exceed the division's prior period ROI, the managers of all three centers will accept the opportunity. If residual income is used to award bonuses, only two of the managers will accept the investment opportunity

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