The home appliances division, which is part of a large company, had last period an operating income of $20 million and operating assets of $200 million. The manager is considering the following projects (sums are in million $): Project Annual incremental income Required investment Project A 8 100 Project B 6.5 50 Project C 5 25 Project D 19.8 180 The manager is able to invest in multiple projects (he does not need to choose only one project). Which project(s) will the manager invest in if top management evaluates him/her by:

1. Operating Income

2. ROI

Whats the optimal decision for the company if cost of capital is 15%?