B - QUESTION

If Martin Koch is evaluated based on the division's return on investment, will he choose to invest in the new line?

select an option

Yes

No

View Policies Current Attempt in Progress Paula Boothe. president of the Ayayai Corporation, has mandated a minimum 8% return on investment for any project undertaken by the company. Given the company's decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 10%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 13% return on investment for the past three years' This year is not expected to be different from the past three. Koch has just received a proposal to invest $2,000,000 in a new line of energy drinks that is expected to generate $220,000 in operating Income. (3) Calculate the return on investment expected on the new line of energy drinks. (Round answer to 1 decimal place, eg. 5.1%.) / 0 Return on Investment eTextbook and Media Save for Later Attempts: 0 of 3 used (bl If Martin Koch is evaluated based on the division's return on investment will he choose to invest in the new line? 6 ACC-650 TOPIC 7 Assignment Question50f12 _/5 E Save for Later Attempts: 0 of 3 used (Cl Would Paula Boothe prefer that Martin Koch invest in the new line? eTextbook and Media Save for Later Attempts: 0 of 3 used