Marcos Co. is considering a project that will increase residual income by $15,000. The project has a 12% return on investment (ROI) which exceeds the company's 10% required rate of return. Marcos Co. currently has an overall 15% ROI in the department where this project would be implemented. Which of the following statements regarding this potential investment are true? The project should be rejected by the company because its ROI is lower than the current departmental ROI. The project should be accepted by the company because it increases overall residual income. The project should be accepted because the residual income will help push the project's ROI above the projected 12%. The department manager may not want to accept the project because it will lower the overall ROI for the department.
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 17:30, samanthaepperson
The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?
Answers: 1
Business, 22.06.2019 19:00, RoyalGurl01
Describe how to write a main idea expressed as a bottom-line statement
Answers: 3
Do you know the correct answer?
Marcos Co. is considering a project that will increase residual income by $15,000. The project has a...
Questions in other subjects:
Chemistry, 31.01.2020 21:45
Mathematics, 31.01.2020 21:45
Mathematics, 31.01.2020 21:45
Mathematics, 31.01.2020 21:45
Biology, 31.01.2020 21:45
