Ecru Corp. has four projects available to take on this year, each in a separate division. Relevant information about the divisions and their projects is shown below.

	Project 1	Project 2	Project 3
Current Division ROI	19%	20%	19%
Project ROI	21%	22%	17%
Required Rate of Return	16%	17%	13%

If the managers of the divisions are all given a bonus based on the return on investment of the division they manage, which projects would you expect the managers to take on?

Multiple Choice

• Project 1 only

• Project 2 only

• Project 3 only

• Projects 1 and 2

• Projects 1 and 3