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Social Studies, 30.07.2019 23:10 andybiersack154

Kelfour enterprises has divided its operations into two divisions. relevant accounting data for each division is as follows: divisions sales operating assets operating income western division $ 150,000 $ 100,000 $ 15,000 eastern division $ 300,000 $ 150,000 $ 16,500kelfour has an additional $50,000 of funds to invest. the manager of the western division believes that she can invest the funds at a rate of return (roi) of 14% while the manager of the eastern division has found a new investment opportunity that is expected to yield a 12% roi. currently kelfour uses roi as the sole measure of managerial performance. based on this information
(a) the manager of the western division would accept the $50,000 additional investment opportunity because it would increase the division's ri by $2,000.
(b) the manager of the eastern division would accept the $50,000 additional investment opportunity because it would increase the division's ri by $2,000.
(c) the ceo would be indifferent because the $50,000 additional investment would increase the ri of the company as a whole regardless of which division receives the additional investment.
(d) all of the answers represent true statements.

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