Managers usually face novel and unstructured problems, leaving them uncertain about how to proceed.

An insurance company collected $31.0 million in premiums and disbursed $28 million in losses. Loss adjustment expenses amounted to $5.0 million. The firm is profitable

A. if dividends paid to policyholders is $4 million and income generated on investments is $4 million. B. if dividends paid to policyholders is $10 million and income generated on investments is $14 million. C. if dividends paid to policyholders is $6 million and income generated on investments is $2 million. D. if dividends paid to policyholders is $10 million and income generated on investments is $4 million. E. if dividends paid to policyholders is $4 million and income generated on investments is $2 million.

The method of analyzing capital investment proposals that divides the estimated average annual income by the average investment is:

A) cash payback method B) net present value method C) internal rate of return method D) average rate of return method