The Parkes Division of Global Corporation, which has income of $250 000 and an asset investment of $1 562 500, is studying an investment opportunity that will cost $450 000 and yield a profit before tax of $67 500. Assuming that Global Corporation uses an imputed interest charge of 14 per cent, would the investment be attractive to: 1-Divisional management if ROI is used to evaluate divisional performance? 2-Divisional management if residual income (RI) is used to evaluate divisional performance? 3-The management of Global Corporation?

Option	Attractive to Parkes: ROI	Attractive to Parkes: RI	Attractive to Global Corp.
A.	Yes	Yes	Yes
B.	No	Yes	Yes
C.	No	Yes	No
D.	Yes	No	No

Select one:

a. Option A

b. Option D

c. Option B

d. Option C