Division A of a large company is approaching its year end. The division is evaluated using ROI with a target rate of return of 15%. The division has control of all aspects of its operation except that all cash balances are centralized by the company and therefore left off divisional balance sheets. The divisional manager is considering the following options. 1. (i) To delay payment of a supplier until next year, the potential prompt payment discount of 5% will be lost. The debt is for $27,500. 2. (ii) To scrap a redundant asset with a book value of $147,000. The manager has been offered $15,000 as immediate scrap proceeds, whilst he is fairly confident that he could get $25,000 in an industry auction to be held at the start of the new year. Assume that the manager is very shorttermist (i.e. only considers the implications for this year) and that the expected ROI for the year, before these options, is 18%. Which of the two options will the manager implement for this year to improve his ROI?