Dust CO has two divisions, A and B. Each division is currently considering the following separate projects:

Division ADivision B

Capital required for the project ($mi) $ 32,6$22,2

Sales generated by project ($mi) $14,4$8,8

Operating profit margin 30%24%

Cost of Capital10%10%

Current return on investment of Division 15%9%

If residual income is used as the basis for the investment decision, which Division(s) would choose to invest in the project?

A)Both Division A and Division B

B)Division A only

C)Neither Division A nor Division B

D)Division B only