Two divisions get funding for their project

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Reference no: EM134040290

Question

You are tasked with choosing which of two divisions get funding for their project. Division A claims their project will have an ROE of 17%, while Division B claims their project will have an ROE of 15%. Your boss hints that he would like you to choose Division A based on their higher ROE. Is this the right decision? Explain in detail why or why not.

Reference no: EM134040290

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