An investment division earns a return on investment of 15% and a residual income of $200,000. The cost of capital is 18%. A new project gives a return on capital employed at16%. If the new product is accepted what will happen to the investment divisions return of investment and residual income?

	ROI	Residual Income
a	Increase	Decrease
b	Incease	Increase
c	Incease	No effect
d	Derease	Decrease
e	Decrease	Increase