Figure 19-1 Assume the Division's Current ROI Is 10 Per Cent and Project

question 11

Multiple Choice

Figure 19-1 $$\begin{array} { c c c } \text { Project } & \text { Income } & \text { Investment } \\\text { A } & £ 40,000 & £ 800,000 \\\text { B } & 44,000 & 400,000 \\\text { C } & 46,875 & 625,000\end{array}$$ Assume the division's current ROI is 10 per cent and the firm's minimum required rate of return is 6 per cent.
-Refer to Figure 19-1 above. If you were the president of the firm, which projects would you want the division manager to accept?

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

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Definitions:

Sound Reason

A basis for argument or decision that is valid and grounded in logic or fact.

Creative Spirit

The innate or developed ability to create, innovate, or conceive artistic or novel ideas, projects, or solutions.

Willingness to Take Risks

The propensity of an individual to engage in behaviors or actions that have the potential for negative outcomes in pursuit of a desired result.

Defer to Others

The act of yielding or submitting to the judgment, opinion, or decision of another person.