The following investment opportunities are available to an investment center manager: Project A: Investment $800,000; Annual Earnings $90,000. Project B: Investment $100,000; Annual Earnings $20,000. Project C: Investment $300,000; Annual Earnings $25,000. Project D: Investment $400,000; Annual Earnings $60,000. The project with the highest ROI isAnswers:

1, Project A

2, Project B

3, Project C

4, Project D

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The following investment opportunities are available to an investment center manager: Project A: Investment $800,000; Annual Earnings $90,000. Project B: Investment $100,000; Annual Earnings $20,000. Project C: Investment $300,000; Annual Earnings $25,000. Project D: Investment $400,000; Annual Earnings $60,000. If the cost of capital is 10 percent and the annual earnings approximate cash flows excluding finance charges, which project(s) should be chosen?

1, Projects A, B & D

2, Projects, A, B, & C

3, Project B only

4, none of these projects

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The following investment opportunities are available to an investment center manager: Project A: Investment $800,000; Annual Earnings $90,000. Project B: Investment $100,000; Annual Earnings $20,000. Project C: Investment $300,000; Annual Earnings $25,000. Project D: Investment $400,000; Annual Earnings $60,000. Suppose only one project can be chosen and the annual earnings approximate cash flows excluding finance charges. Which project should be chosen?

1, Project A

2, Project B

3, Project C

4, Project D

5, None of these projects

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The Alpha Division of the Carlson Company manufactures product X at a variable cost of $40 per unit. Alpha Division's fixed costs, which are sunk, are $20 per unit. The market price of X is $70 per unit. Beta Division of Carlson Company uses product X to make Y. The variable costs to convert X to Y are $20 per unit and the fixed costs, which are sunk, are $10 per unit. The product Y sells for $80 per unit. Suppose there is no market price for product X. What transfer price should be used for decentralized decision-making?

1, $80

2, $70

3, $30

4, $40

5, cannot be determined from information provided