Le Sud Retailers Has a Current Return on Investment of 10

question 85

Multiple Choice

Le Sud Retailers has a current return on investment of 10% and the company has established an 8% minimum rate of return for the division. The division manager has two investment projects available for which the following estimates have been made:
Project A - Annual controllable margin = $24000 operating assets = $400000
Project B - Annual controllable margin = $60000 operating assets = $550000
Which project should be funded?

• A) Both projects
• B) Project A
• C) Project B
• D) Neither project

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Definitions:

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, leading to self-actualization.

Affiliation Motive

The innate desire to form and maintain social bonds and interpersonal connections.

Implicit Motivation

Refers to motivation that is unconscious, driving behavior without the individual being consciously aware of the motivating factors.

Approach Motivation

The drive to move towards, seek out, or achieve positive outcomes.