- The Ant Division Of Marvel Corporation Which Has Income Of 11 250 And An Invested Capital Of 75 000 Is Studying An I 1 (35.6 KiB) Viewed 11 times
The Ant Division of Marvel Corporation, which has income of $11,250 and an invested capital of $75,000, is studying an investment opportunity that will cost $35,000 and yield a profit of $3,325. Assuming the
company uses an imputed interest rate of 10%, which of the following statements is true? Regardless of whether the division is evaluated on the basis of ROI or residual income, the divisional manager would not accept the new investment because it is bad for the division and the
company. If the division is evaluated on the basis of residual income, the divisional manager would not accept the new investment because it is only good for the
company but bad for the division. If the division is evaluated on the basis of ROI, the divisional manager would accept the new investment because it is good for the division. O If the division is evaluated on the basis of ROI, the divisional manager would not accept the new investment because it is only good for the
company but bad for the division. O If the division is evaluated on the basis of residual income, the divisional manager would accept the new investment because it is good for the division.