UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

141. Correct answer d. As long as the project return is above the cost of capital, the manager of

the Construction Equipment Division will accept the project. The manager of the

Household Appliances Division, measured on the basis of ROI, will not accept a projected

rate of return of 14% when the current ROI of the division is 16%.