If return on investment for a division is 15 percent and the companys minimum required cost of

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If return on investment for a division is 15 percent and the company’s minimum required cost of capital is 18 percent, then
  a.  residual income for the division is negative.
  b.  residual income for the division takes on a value between zero and positive one.
  c.  residual income cannot be computed.
  d.  EVA must be negative.
  e.  residual income is positive.

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