The Following Information Pertains to a Segment of the Moore

Multiple Choice

The following information pertains to a segment of the Moore Company.Invested capital is defined as total assets.The weighted average cost of capital is 10%.The ROI of the segment before the project is 20%.The ROI of the segment after the project is 18%.The manager is evaluated based on the segment's ROI.A project earning a ROI of 12% should be ________.

A) accepted
B) rejected
C) compared to the company's ROI
D) compared to the company's residual income