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

Divisional P Q

Sales $ $540,000$ $ $956,800$

Operating Income $ $300,000$ $ $598,000$

Investment $ $2,500,000$ $ $4,600,000$

If both divisions were presented with an opportunity to invest in a project that is estimated to achieve an ROI of $12\%,$ what will the units likely decide?

Multiple Choice

Division P will invest; Division Q will not invest.

Division P will invest; Division Q will be indifferent.

Division P will not invest; Division Q will invest.

Incorrect

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

Neither unit will invest in the projects.