Question: division a is considering a project that will earn a rate of return that is greater than the required return on operating assets, but less
division a is considering a project that will earn a rate of return that is greater than the required return on operating assets, but less than the division's ROI. Division B is considering a project that will earn a rate of return that is greater than the divison's ROI, but less than the require returnon operating assets. If the objective is to maximize residual income, would these divisions accept of reject the project?
Division A Division B
A) accept accept
B) reject accept
C) reject reject
D) accept reject
Please explain this thoroughly!
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