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Evaluating Segments Based on the Segment's Return on Investment Will

Question 81

Multiple Choice

Evaluating segments based on the segment's return on investment will


A) encourage each segment's manager to select only projects that are above the company's current return on investment.
B) encourage each segment's manager to only select projects that are above the individual segment's current return on investment.
C) encourage each segment's manager to select only projects below the company's required rate of return.
D) encourage managers to select only projects below the segment's cost of capital.

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