D Question 16 1 pts Senior management at Dahl Industries is debating the best single key financial measure to evaluate the performance of divisional managers. Currently, managers' performance is evaluated solely on the basis of ROI. Managers' cash bonus is increasing in annual ROI. Dahl Industries' Wonka Division is currently deciding whether to investment in a new project. The project's key estimates and parameters are as follows: . Project outlay: $15,000,000 Average ROI in first two years: 15% . Average ROI over project life: 13% . Hurdle rate: 8% . Current ROI of Wonka Division: 20% Wonka Division's manager, James Peach, has indicated to senior management that he intends to not invest in the project. He explains that "it just isn't a good time for a major investment project." Which of the following statements is correct? O If the hurdle rate were 12%, Peach would invest in the project, even though it wouldn't be in the firm's interests for him to do so. As the project's NPV0, it is in the firm's interest for Peach to invest in the project. However, Peach fails to do so because investing in the project will lower his cash bonus