Question
World Plc. has the following two divisions: South Division North Division Investment project available 28m 28m Controllable contribution 8m 6.6m ROI of divisions at present
World Plc. has the following two divisions:
South Division North Division
Investment project available 28m 28m
Controllable contribution 8m 6.6m
ROI of divisions at present 32% 20%
The overall cost of capital for the company is 25%
REQUIRED
- Calculate the return on investment (ROI) for the proposed project for each Division and comment on comment on the possible dilemmas for decision-making.
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
10th Edition
1119791081, 978-1119791089
