The Following Information Is Provided Assume the Division's Current ROI Is 10 Per Cent and \text

question 8

Multiple Choice

The following information is provided: $\begin{array}{crc}\text { Froject } & \text { Income } & \text { Investment } \\\mathrm{A} & £ 33,000 & £ 300,000 \\\mathrm{~B} & 56,250 & 750,000 \\\mathrm{C} & 27,500 & 550,000\end{array}$ Assume the division's current ROI is 10 per cent and the firm's minimum required rate of return is 7 per cent. If you were the president of the company, which projects would you want the division manager to accept?

• A)Projects A, B, and C
• B)Projects A and C
• C)Projects A and B
• D)Project A only

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Definitions:

Four Humors

An ancient theory suggesting that human behavior and health are governed by a balance of four bodily fluids: blood, phlegm, black bile, and yellow bile.

Yellow Bile

An ancient bodily fluid concept, theorized to be one of the four bodily humors associated with a choleric temperament.

Phlegm

A thick, viscous substance produced by the mucous membranes of the respiratory tract, often associated with colds and other illnesses.

Behaviorism

A theory in psychology that emphasizes the importance of observable behaviors rather than internal processes such as thoughts and emotions.