Top management measures your division’s performance by calcu

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Top management measures your division’s performance by calcu

Top management measures your division’s performance by calculating the division’s return on investm… Show more Top management measures your division’s performance by calculating the division’s return on investment (ROI), defined as division- operating income divided by division assets. Your division has done quite well recently, its ROI is 30 percent. You believe the division should invest in a new production process, but a colleague disagree, pointing out that because the new investment’s first-year ROI is only 25 percent, it will hurt performance. How would you respond? • Show less

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