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: Current


Use the following information to answer the next TWO (2) questions. Selected performance data for three divisions of Dory Company are given as follows: Current Return on Investment (ROI) Current Residual Income (RI) Minimum required rate of return Division A 15% $200,000 10% Division B 13% $0 13% Division C 9% $-950,000 10.5% Each division is presented with an investment opportunity that would yield a 11% 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? Division A: Reject; Division B: Accept; Division C: Accept Division A: Accept; Division B: Accept; Division C: Accept Division A: Accept; Division B: Accept; Division C: Accept Division A: Accept; Division B: Reject; Division C: Accept 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? O Division A: Reject; Division B: Accept; Division C: Accept Division A: Accept; Division B: Reject; Division C: Accept Division A: Reject; Division B: Reject; Division C: Accept Division A: Accept; Division B: Accept; Division C: Accept Division A: Accept; Division B: Reject; Division C: Accept
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