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Edith Blevins, the president of RAM Corp., requires a minimum return on investment (ROI) of...

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Accounting

Edith Blevins, the president of RAM Corp., requires a minimum return on investment (ROI) of 10% on any new projects at her company. Managers at RAM Corp. have the authority to make investment decisions for their divisions. Malik Verdon, manager of the Semiconductor Division, has had a ROI of 14% for his division for the past two years and expects to earn a similar ROI this year. Malik has the opportunity to invest in a new line of semiconductors, which he expects to generate a profit of $180,000 this period on an investment of $1,500,000. If RAM Corp evaluates performance based on return on investment, then which of the following statements about this investment opportunity is true? Edith and Malik will both prefer to accept
Edith will prefer to accept, Malik will prefer to reject
Edith will prefer to reject, Malik will prefer to accept
Edith and Malik will both prefer to reject

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