Walk Warren is president of the Philadelphia Freedom Corporation. The company is decentralized and leaves investment decisions up to the discretion of the division managers. John Legend, manager of one of the divisions, has had a return on investment of 14% for his division for the past three years and expects the division to have the same return in the coming year. John has the opportunity to invest in a new product which is expected to have a return on investment of 12%. The company's minimum required rate of return is 8%.

Suppose the company evaluates managerial performance using return on investment. What action would each of them prefer with respect to the decision of whether to take on the new product?

	Warren	John
A)	accept	reject
B)	reject	accept
C)	accept	accept
D)	reject	reject

Group of answer choices

Choice A

Choice D

Choice B

Choice C