Wisconsin Division Has Operating Income of $40,000 for the Year

question 2

Multiple Choice

Wisconsin Division has operating income of $40,000 for the year ending December 31,2011.Average invested capital is $800,000 and the weighted-average cost of capital is 10%.The division is considering a new investment that would cost $800,000 and earn 7% annually.If return on investment is the performance metric,should the manager of the Wisconsin Division accept the new investment?

• A) No, because the return on investment of the division decreases with the new investment.
• B) No, because the return on investment of the division increases with the new investment.
• C) Yes, because the return on investment of the division decreases with the new investment.
• D) Yes, because the return on investment of the division increases with the new investment.

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Definitions:

Contamination

The presence of unwanted substances in materials, environments, or products, leading to pollution or infection.

Performance Reviews

Formal assessments where an employee's work performance is evaluated and discussed, usually by their manager, focusing on achievements and areas for development.

Performance Standards

Benchmarks or specific criteria set to evaluate the effectiveness or success of an individual's or organization's work.

Job Analysis

The process of studying and collecting information about the duties, responsibilities, and tasks of a specific job.