The Jackson Division of Florida Motors had an operating income of $335,000 and net assets of $1,340,000. Florida Motors has a target rate of return of 12 percent. The Jackson Division has an opportunity to increase operating income by $50,000 if a $200,000 investment in assets is made. What will Jacksons ROI and Residual Income be if the project is undertaken?

	A.	ROI 26 percent, Residual Income $200,000
	B.	ROI 12 percent, Residual Income $50,000
	C.	ROI 27 percent, Residual Income $198,000
	D.	ROI 25 percent, Residual Income $200,200

Clarinet Publishing is considering the purchase of a used printing press costing $40,000. The printing press would generate a net cash inflow of $10,000 a year for 10 years. At the end of 10 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation. The project's accounting rate of return on the initial investment is:

	A.	75 percent
	B.	15 percent
	C.	32 percent
	D.	19 percent