Consider the following data from two divisions of a company, P and Q:

Divisional P Q

Sales $ 756,000 $ 1,113,200

Operating Income $ 378,000 $ 506,000

Investment $ 4,200,000 $ 4,600,000

If both divisions were presented with an opportunity to invest in a project that is estimated to achieve an ROI of 9%, what will the units likely decide?

Question 21 options:

Division P will be indifferent; Division Q will not invest.

Division P will invest; Division Q will not invest.

Division P will invest; Division Q will be indifferent.

Neither unit will invest in the projects.

Division P will not invest; Division Q will invest.