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Perry Corporation Is Composed of Three Operating Divisions

Question 92

Multiple Choice

Perry Corporation is composed of three operating divisions. Overall, the Perry Corporation has a return on investment of 20%. Division A has a return on investment of 25%. If Perry Corporation. evaluates its managers on the basis of return on investment, how would the Division A manager and the Perry Corporation president react to a new investment that has an estimated return on investment of 23%? Perry Corporation is composed of three operating divisions. Overall, the Perry Corporation has a return on investment of 20%. Division A has a return on investment of 25%. If Perry Corporation. evaluates its managers on the basis of return on investment, how would the Division A manager and the Perry Corporation president react to a new investment that has an estimated return on investment of 23%?   A)  accept accept B)  accept reject C)  reject accept D)  reject reject


A) accept accept
B) accept reject
C) reject accept
D) reject reject

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