ACCA

Divisional Performance

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Section A InvestBank evaluates its divisional managers based on Return on Investment (ROI). The target ROI is 15%. Division A currently has an ROI of 20%. The manager of Division A is considering a new project that requires an investment of $100,000 and will generate an annual controllable profit of $18,000. Which of the following statements is true regarding the manager's likely decision and the concept of goal congruence?

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