Managerial Accounting Assignment
Managerial accounting chapter Q Chapter 12 Flashcards Cuizlet w.com/ilm/takeAssignment/takeAssignmentMain.do?invoker-&takeAssignmentSessionl.ocator assignment take8inprogress-false Error Calculator The manager of Stock Division projects the following for next year: Sales $185,000 $60,000 Operating income Operating assets $375,000 The manager can invest in an additional project that would require $40,000 investment in additional assets and would generate $6,000 of additional income. The company's minimum rate of return is 14%.
Which of the following statements is true? a. If the manager invests in the additional project, the residual income of the division will increase. b. The residual income of the project is less than the residual income of the division without the project; therefore the project will be rejected. c. If the manager invests in the additional project, ROI of the division will increase. d. Average investment for Stock Division will decrease if the project is accepted for investment. e. None of these choices are correct. .