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Vaughan Company has 3 divisions with the following information: Division A Division B Division C Sales $750,000 $700,000 $360,000 Net Operating Income $20,000 $34,000 $36,000

Vaughan Company has 3 divisions with the following information:

Division A Division B Division C
Sales $750,000 $700,000 $360,000
Net Operating Income $20,000 $34,000 $36,000
Average Operating Assets $200,000 $500,000 $300,000
Minimum Required Rate of Return 12% 6% 11%

Assume that each division was presented with an investment opportunity that would yield a rate of return of 11.2%. If performance is being measured by ROI a.both division A and B will accept the project, b.only division A will accept the project, c.only division C will accept the project, d.both division B and C will accept the project, e.all of the divisions will accept the project, f.none of the divisions will accept the project, g.only division B will accept the project because a.11.2% exceeds the current rate of return, b.11.2% is more than Vaughan company's total company rate of return, c.11.2% is less than Vaughan company's total company rate of return, d.11.2% exceeds their minimum required rate of return

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