Miller Corporation owns Elizabeth's Business Machines Division.Elizabeth's Business Machines Division is considering an investment in Photocopies Company and selected financial data for Photocopies Company is as follows:

Sales	$ 6,800,000
Operating income	$ 240,000
Total assets	$ 2,720,000
Current liabilities	$ 350,000
Required rate of return-Miller Corporation	13%
Weighted average cost of capital	8%

What is the Photocopier Company's return on investment and if Miller Corporation evaluates divisions based on ROI would Elizabeth's Business Machines Division invest in Photocopies Company?

A.

11.3% and not invest

B.

40% and invest

C.

8.8% and not invest

D.

3.5% and not invest