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The following information belongs to Moreshi Company:         Total assets                      $150,000  &nbs

The following information belongs to Moreshi Company:

        Total assets                      $150,000

        Total current liabilities         110,000

        Total expenses                   160,000

        Total liabilities                     115,000

        Total revenues                    180,000

If invested capital is defined as total assets, a project earning an ROI of 12% should be _____.

Group of answer choices

rejected if the desired rate of return is less than 12%

rejected

accepted

rejected if the cost of capital is greater than 12%

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Answer #1

ANSWER

If invested capital is defined as total assets, a project earning an ROI of 12% should be rejected if the cost of capital is greater than 12%
A project with ROI less than cost of capital is not acceptable. The ROI should be greater than cost of capital for project to be accepted
Option D is correct

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