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The following projections are available for the Southern Division at JJ Mean Corp. for the coming period: $185.000 $33,750 Revenue Operating income Operating assets $375,000

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The following projections are available for the Southern Division at JJ Mean Corp. for the coming period: $185.000 $33,750 Revenue Operating income Operating assets $375,000 The Southern Division manager has the opportunity to invest in an additional project that would require a $40,000 investment in additional assets and would generate $4,800 of additional operating income. If the company's minimum required rate of return is 14%, then which of the following statements is true? The project will decrease the division's ROI, therefore it will likely be rejected The project will increase the division's residual income, therefore it will likely be accepted The project's Rol is greater than the firm's required rate of return, therefore the division will likely accept The project will increase the division's ROI, therefore the division will likely accept None of the above

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