Question: 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
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) 16,496 14.496 10.4% Current Residual Income (RI) $223.000 SO $-1,090,000 Minimum required rate of return 11.49 14.4% 11.99 Each division is presented with an investment opportunity that would yield a 12.4% rate of retur, 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? Division AAccept, Division B Accept Division C. Accept Division A Accept, Division B Reject, Division C Accept Division A Accept Division B Accept: Division Accept Division A Reject Division B: Accept, Division C. Accept O Division A Reject, Division B Reject, Division C Accept 2. If performance is being measured by Residual Income (RI), what would be the decision to accept or reject the opportunity by each division? Division A Accept; Division B: Accept, Division C. Accept Division A Accept, Division B Reject, Division C Accept Division A Reject, Division B: Accept, Division C Accept O Division A: Accept: Division B: Reject, Division C Accept Division A Reject, Division B Reject: Division C Accept
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