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The Magellan Division of Global Corporation,which Has Income of $250,000

question 39

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The Magellan Division of Global Corporation,which has income of $250,000 and an asset investment of $1,562,500,is studying an investment opportunity that will cost $450,000 and yield a profit of $67,500.Assuming that Global uses an imputed interest charge of 14%,would the investment be attractive to:
1-Divisional management if ROI is used to evaluate divisional performance?
2-Divisional management if residual income (RI) is used to evaluate divisional performance?
3-The management of Global Corporation? The Magellan Division of Global Corporation,which has income of $250,000 and an asset investment of $1,562,500,is studying an investment opportunity that will cost $450,000 and yield a profit of $67,500.Assuming that Global uses an imputed interest charge of 14%,would the investment be attractive to: 1-Divisional management if ROI is used to evaluate divisional performance? 2-Divisional management if residual income (RI) is used to evaluate divisional performance? 3-The management of Global Corporation?   A) Choice A B) Choice B C) Choice C D) Choice D E) Choice E


Definitions:

Air Cells

Small cavities found in various biological tissues, such as the cavities within the bone structure of the human ear, which help in respiratory gas exchange or sound transmission.

Lungs

A pair of spongy, air-filled organs located on either side of the chest (thorax), which play a crucial role in the respiratory system.

Pharynx

The muscular tube at the back of the nasal and oral cavities that connects them to the esophagus.

Respiratory System

The network of organs and tissues, including the lungs and airways, involved in the intake of oxygen and the removal of carbon dioxide from the body.

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