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The Cardstock Division of the Pulp Paper Company is considering investing in a project that reported the following results from the past year. The Corporation's
The Cardstock Division of the Pulp Paper Company is considering investing in a project that reported the following results from the past year. The Corporation's shareholders require a return of 10%. The Cardstock Division currently has a 12% Rol without the project it is considering, Sales $700,000 Operating income 140,000 Total assets $1,300,000 Current liabilities 400,000 What is the division's Return on Investment (ROI) and if the division manager is evaluated on the Dividsion's ROI would the manager accept or reject this project? O A 20% and accept the project OB. 20% and reject the project OC. 10.8% and accept the project OD. 10.8% and roject the project
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