Multiple Choice
The following information pertains to a segment of the Marian 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 economic profit.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
Correct Answer:

Verified
Correct Answer:
Verified
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