John Deere is an American manufacturer of agricultural, construction, and forestry machinery, John Deere is...
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John Deere is an American manufacturer of agricultural, construction, and forestry machinery, John Deere is headed by President Conion. The company Is decentralized, and leaves Investment decisions up to the discretion of the division managers, Mt. Gronen, manager of the Forestry Division. The return on investment of 14% for his division for the past three years and expects the division to have the same return in the coming your Grow the opportunity to invest in a new product line which is expected to have a return on investment of 12%. The company's minimum required tate of return is 8%. If John Deere evaluates managerial performance using residual income based on the corporate minimum required rate of return of 8%, what decision would be preferred by Conlon and Gronen? Conlon accept reject accept reject Gronen reject accept accept reject
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