When a Company Uses Return on Investment as a Performance

Multiple Choice

When a company uses return on investment as a performance metric,managers have an incentive to invest only in projects ________.

A) that increase the return on investment of the segment or division
B) that decrease the return on investment of the segment or division
C) that have a return on investment that exceeds the cost of capital of the segment or division
D) that have a return on investment that is less than the cost of capital of the segment or division