The Magellan Division of Global Corporation, Which Has Income of $250,000

The Magellan Division of Global Corporation, which has income of $250,000 and an asset investment of $1,562,500, is studying an investment opportunity that will cost $450,000 and yield a profit of $67,500. Assuming that Global uses an imputed interest charge of 14%, would the investment be attractive to:
1-Divisional management if ROI is used to evaluate divisional performance?
2-Divisional management if residual income (RI) is used to evaluate divisional performance?
3-The management of Global Corporation? $\begin{array}{llll}&\text { Attractive to } & \text { Attractive to } & \text { Attractive } \\&\text { Magellan: ROI } & \text { Magellan: RI } & \text { to Global }\\\hline\text { A. } & \text { Yes } & \text { Yes } & \text { Yes } \\\text { B. } & \text { Yes } & \text { No } & \text { No } \\\text { C. } & \text { Yes } & \text { No } & \text { Yes } \\\text { D. } & \text { No } & \text { Yes } & \text { Yes } \\\text { E. } & \text { No } & \text { Yes } & \text { No }\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E