Evaluation of Capital Investments Based on Economic Profit Motivates Managers

question 16

Multiple Choice

Evaluation of capital investments based on economic profit motivates managers to invest in projects that ________ because those investments increase the division's economic profit.

• A) earn a return in excess of the project's return on investment
• B) earn a return in excess of the segment's return on investment
• C) earn a return in excess of the cost of capital
• D) earn a return in excess of the segment's net income

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Definitions:

Dependent Clause

A group of words that contains a subject and a verb but does not express a complete thought, making it unable to stand alone as a sentence.

Summary Transition

A phrase or sentence that signals the conclusion of one section or topic and the move to a different or overarching summary within a piece of writing.

RankBrain

A component of Google's core algorithm that uses machine learning to determine the most relevant search results for queries.

Search Engine

A software system designed to carry out web searches, which means to search the World Wide Web in a systematic way for particular information specified in a textual web search query.