The office product division in Hyacinth Company reported $11,250 net operating income with $750,000 average operating assets this year. The office product division has a new investment opportunity that would increase NOI by $4375 with $35,000 additional investment.

Which of the following statement is TRUE given that the company's minimum required rate of return is 10%?

- If the division is evaluated on the basis of residual income, the manager of the office product division would accept the new investment because it is good for the division

- if the division is evaluated on the basis of ROI, the manager of the office product division would accept the new investment because it is good for the division

- Regardless of whether the division is evaluated on the basis of ROI or Residual income, the manager will not accept the new investment because it is bad for the company\

-If the division is evaluated on the basis of ROI, the manager of the office product division would not accept the new investment because it is bad for the company