The following information pertains to Wolfe Company

-If invested capital is defined as total assets minus current liabilities, a project earning an ROI of 30 percent should be
A) accepted.
B) rejected.
C) rejected if the cost of capital is less than 30 percent.
D) rejected if the desired rate of return is greater than 30 percent.

Question

The following information pertains to Wolfe Company
 
-If invested capital is defined as total assets minus current liabilities, a project earning an ROI of 30 percent should be
A) accepted. 
B) rejected. 
C) rejected if the cost of capital is less than 30 percent. 
D) rejected if the desired rate of return is greater than 30 percent.

Quizplus · Accepted Answer

The Answer of The following information pertains to Wolfe Company
 
-If invested capital is defined as total assets minus current liabilities, a project earning an ROI of 30 percent should be
A) accepted. 
B) rejected. 
C) rejected if the cost of capital is less than 30 percent. 
D) rejected if the desired rate of return is greater than 30 percent.

The Following Information Pertains to Wolfe Company