The following information pertains to Berle Company: $$\begin{array} { l r }
\text { Total assets } & \$ 150,000 \
\text { Total current liabilities } & 110,000 \
\text { Total expenses } & 160,000 \
\text { Total liabilities } & 115,000 \
\text { Total revenues } & 180,000
\end{array}$$ If invested capital is defined as total assets minus current liabilities, a project earning an ROI of 30% should be _____.
A)accepted
B)rejected
C)rejected if the cost of capital is less than 30%
D)rejected if the desired rate of return is greater than 30%

Question

The following information pertains to Berle Company: $$\begin{array} { l r } 
\text { Total assets } & \$ 150,000 \
\text { Total current liabilities } & 110,000 \
\text { Total expenses } & 160,000 \
\text { Total liabilities } & 115,000 \
\text { Total revenues } & 180,000
\end{array}$$ If invested capital is defined as total assets minus current liabilities, a project earning an ROI of 30% should be _____.
A)accepted
B)rejected
C)rejected if the cost of capital is less than 30%
D)rejected if the desired rate of return is greater than 30%

Quizplus · Accepted Answer

The Answer of The following information pertains to Berle Company: $$\begin{array} { l r } 
\text { Total assets } & \$ 150,000 \
\text { Total current liabilities } & 110,000 \
\text { Total expenses } & 160,000 \
\text { Total liabilities } & 115,000 \
\text { Total revenues } & 180,000
\end{array}$$ If invested capital is defined as total assets minus current liabilities, a project earning an ROI of 30% should be _____.
A)accepted
B)rejected
C)rejected if the cost of capital is less than 30%
D)rejected if the desired rate of return is greater than 30%

The Following Information Pertains to Berle Company If Invested Capital Is Defined as Total Assets Minus Current