Which of the following is NOT a reason for evaluating subunits over a

multi-year

time horizon?

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Part 1

A.

The NPV of the cash flows over the life of an investment equals [total

assetsROI].

B.

Managers may curtail R & D or plant maintenance in order to increase

short-term

results.

C.

Investments may actually decrease ROI and or RI in the

short-term,

and benefits of actions taken in the current period may not show up in a

short-term

performance measure.

D.

Investments may actually decrease ROI and or RI in the

short-term.

E.

Benefits of actions taken in the current period may not show up in a

short-term

performance measure