Return on investment (ROI) encourages business units—such as investment centers— to invest only in projects that earn:
A) A rate of return greater than borrowing costs.
B) An amount greater than the amount of EVA® currently being generated.
C) A rate of return greater than the amount of residual income currently being earned.
D) A rate of return less than the unit's current ROI.
E) A rate of return higher than the unit's current ROI.
Correct Answer:
Verified
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