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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

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Answer: c.Reject the investment if it returns less than 15% ROI.

Step-by-step explanation:

Additional investments should yield incremental returns if they are to be accepted. In the previous year, Division A had an Return on Investment of 15%, when an additional investment is being considered, it must bring in more than that 15% if it is to be accepted.

Therefore, if an investment is to give a less than 15% ROI, it should be rejected as it is not bringing additional returns for the Division.

User Vivek Garg
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