Eastern Division
The Eastern Division of Freeport Chemical Co.produced the following operating results for the previous year:
The Eastern Division is considering a $1,000,000 investment in a new project.The Eastern Division estimates that its return on investment (for all of its operations)would be at 22% with the new investment.
Refer to Eastern Division.If the manager of the Eastern Division is evaluated on return on investment alone,will the manager invest in the new project? Explain.

Question

Eastern Division
The Eastern Division of Freeport Chemical Co.produced the following operating results for the previous year:
  The Eastern Division is considering a $1,000,000 investment in a new project.The Eastern Division estimates that its return on investment (for all of its operations)would be at 22% with the new investment.
Refer to Eastern Division.If the manager of the Eastern Division is evaluated on return on investment alone,will the manager invest in the new project? Explain.

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The Answer of Eastern Division
The Eastern Division of Freeport Chemical Co.produced the following operating results for the previous year:
  The Eastern Division is considering a $1,000,000 investment in a new project.The Eastern Division estimates that its return on investment (for all of its operations)would be at 22% with the new investment.
Refer to Eastern Division.If the manager of the Eastern Division is evaluated on return on investment alone,will the manager invest in the new project? Explain.

Eastern Division The Eastern Division of Freeport Chemical Co.produced the Following Operating