The following information pertains to Tyler Company: $$\begin{array} { l l }
\text { Total assets } & \$ 150,000 \
\text { Total current liabilities } & 110,000 \
\text { Total expens es } & 160,000 \
\text { Total liabilities } & 115,000 \
\text { Total revenues } & 180,000
\end{array}$$ If invested capital is defined as total assets, a project earning an ROI of 12% should be:
A) rejected if the desired rate of return is less than 12%
B) rejected
C) accepted
D) rejected if the cost of capital is greater than 12%

Question

The following information pertains to Tyler Company: $$\begin{array} { l l } 
\text { Total assets } & \$ 150,000 \
\text { Total current liabilities } & 110,000 \
\text { Total expens es } & 160,000 \
\text { Total liabilities } & 115,000 \
\text { Total revenues } & 180,000
\end{array}$$ If invested capital is defined as total assets, a project earning an ROI of 12% should be:
A) rejected if the desired rate of return is less than 12%
B) rejected
C) accepted
D) rejected if the cost of capital is greater than 12%

Quizplus · Accepted Answer

The Answer of The following information pertains to Tyler Company: $$\begin{array} { l l } 
\text { Total assets } & \$ 150,000 \
\text { Total current liabilities } & 110,000 \
\text { Total expens es } & 160,000 \
\text { Total liabilities } & 115,000 \
\text { Total revenues } & 180,000
\end{array}$$ If invested capital is defined as total assets, a project earning an ROI of 12% should be:
A) rejected if the desired rate of return is less than 12%
B) rejected
C) accepted
D) rejected if the cost of capital is greater than 12%

The Following Information Pertains to Tyler Company If Invested Capital Is Defined as Total Assets, a Project