Use the following information to answer the next TWO (2) questions.

Selected performance data for three divisions of Dory Company are given as follows:

	Division A	Division B	Division C
Current Return on Investment (ROI)	15.5%	13.5%	9.5%
Current Residual Income (RI)	$214,000	$0	$-1,000,000
Minimum required rate of return	10.5%	13.5%	11%

Each division is presented with an investment opportunity that would yield a 11.5% rate of return,

1. If performance is being measured by Return on Investment (ROI), what would be the decision to accept or reject the opportunity by each Division? multiple choice 1

   • Division A: Accept; Division B: Accept; Division C: Accept

   • Division A: Reject; Division B: Reject; Division C: Accept

   • Division A: Reject; Division B: Accept; Division C: Accept

   • Division A: Accept; Division B: Reject; Division C: Accept

   • Division A: Accept; Division B: Accept; Division C: Accept

1. If performance is being measured by Residual Income (RI), what would be the decision to accept or reject the opportunity by each division? multiple choice 2

   • Division A: Reject; Division B: Reject; Division C: Accept

   • Division A: Reject; Division B: Accept; Division C: Accept

   • Division A: Accept; Division B: Reject; Division C: Accept

   • Division A: Accept; Division B: Reject; Division C: Accept

   • Division A: Accept; Division B: Accept; Division C: Accept