19. Division A has a building with the same original cost as Division B, except that it was purchased four years before Division B's building. If both divisions have identical operating incomes and use the net book value approach for calculating return on investment (ROI), which of the following will be true? a. Both divisions will have the same ROL b. Division B will have a higher ROL c. Division A will have a higher ROL d. More information is needed to answer this question. e. None of the answer choices is correct. 20. All of the following statements are true about return on investment (ROD) excep: A. Breaking out ROI into two ratios provides information that helps division managers identify areas for improvement. . ROI can be improved by decreasing the operating profit margin. c. ROI can be calculated using the gross book value method. d. ROI can be improved by increasing asset turnover. c. None of the answer choices is correct. 21. Genoa Equipment Company has three separate divisions: Tractors, Trailers, and Trucks. Information about the three divisions follows: Tractors Trailers Trucks Operating income $10,125,000 $ 19,500,000 $3,600,000 Operating assets $15,000,000 $78,000,000 $13,500,000 The company has recently implemented a new performance evaluation system. Based on this new system, a division manager would only receive a bonus if the ROI of the division was greater than 45% and residual income was in excess of $6,000,000. If management uses a cost of capital rate of 22%, which division manager(s) would be eligible for a bonus? a The Trucks Division b. The Trailers Division C. The Tractors Division d. All of the divisions. e. None of the answer choices is correct