5 19 Although the manager of the Northern Division at EJM Co. recently invested in...
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5 19 Although the manager of the Northern Division at EJM Co. recently invested in a new asset that generates additional profit for the division, their division's residual income for the period remained unchanged. Which one of the following statements must be true about the investment? The asset's net present value must have been negative The return on investment for the new asset must have been less than the firm's required rate of return O The return on investment for the new asset must have been equal to the firm's required rate of return The asset's net present value must have been positive O None of the above statements are true
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