The Following Information Pertains to Tyler Company If Invested Capital Is Defined as Total Assets, a Project

Multiple Choice

The following information pertains to Tyler Company: $$\begin{array} { l l } \text { Total assets } & \$ 150,000 \\\text { Total current liabilities } & 110,000 \\\text { Total expens es } & 160,000 \\\text { Total liabilities } & 115,000 \\\text { Total revenues } & 180,000\end{array}$$ If invested capital is defined as total assets, a project earning an ROI of 12% should be:

A) rejected if the desired rate of return is less than 12%
B) rejected
C) accepted
D) rejected if the cost of capital is greater than 12%