Division a Had ROI of 15% Last Year

question 89

Multiple Choice

Division A had ROI of 15% last year.The manager of Division A is considering an additional investment for the coming year.What step will the manager likely choose to take?

• A) Accept the investment as long as it provides positive operating income.
• B) Accept the investment as long as its ROI is positive.
• C) Reject the investment if it returns more than 15% ROI.
• D) Reject the investment if it returns less than 15% ROI.
• E) Reject the investment if it returns an ROI equal to 15%.

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Definitions:

Closed Economy

A financial structure that doesn't engage with external economies through trade, investment, or the movement of people.

Public Saving

The difference between the tax revenues and government spending of a country, representing the government's surplus or deficit.

National Saving

The total saving of an economy, consisting of both private and public saving.

Public Saving

The difference between government tax revenues and government expenditures, often used to assess a government's financial health.