When a Company Uses Economic Profit as a Performance Metric,managers

Multiple Choice

When a company uses economic profit as a performance metric,managers have an incentive to invest only in projects ________.

A) earning less than the return on investment of the segment or division
B) earning more than the return on investment of the segment or division
C) earning more than the cost of capital of the segment or division
D) earning less than the cost of capital of the segment or division