The Gallagher Company is decentralized and has a required opportunity cost of capital of 20%. The West division, whose current return on investment (ROI) is 15%, is considering an investment which will earn a return of 18%. The East Division, whose current ROI is 25%, is considering an investment which will earn a return of 22%. If the objective is to maximize residual income, each division will make the following choice: West East A Reject Accept OB. Accept Reject Oc. Accept Accept OD. Reject Reject Previous Page Next Pace Page 20 of 25