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. The MSG Corporation had net operating income of $380,000 and average operating assets of $2,000,000. The corporation's minimum required return on new projects is

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. The MSG Corporation had net operating income of $380,000 and average operating assets of $2,000,000. The corporation's minimum required return on new projects is 18% The US, Division of the corporation is considering an investment of S70 000 in a project that will generate a net income of $12,000. The U.S. Division currently earns a return on in US division manager can be evaluated based on either the division's ROl (return on investment) or the division's RI (residual income). Which of the following is true? vestment rate of20%. The A. The US Division manager would invest in the new project only if the division's ROl is used for evaluating the division manager. B. The US Division manager would invest in the new project only if the division's RI is used for evaluating the division manager. C. The US Division manager would never invest in the new project whether the division's ROI or RI is used for evaluating the division manager. D. The US Division manager would always invest in the new project whether the division's ROI or RI is used for evaluating the division manager

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