Question: a. At present, divisional performance is evaluated based on ROI. If this is the case, which division would want to take over the new investment

a. At present, divisional performance is evaluated based on ROI. If this is the case, which division would want to take over the new investment opportunity?
b. If the company changed its performance evaluation criteria to encompass residual income basedon a charge for capital of 14 per cent, which division would want to take over the new investment opportunity?

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a Divisional Margin of new investment opportunity 2 000 000 625 000 1 000 000 375 000 ROI 375 0... View full answer

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