The publications department of a printing company is evaluating two projects (Project 1 and Project 2). The companys required rate of return is 15%. The departments current Return on Investment (ROI) is 18%. (Assume all data is in present value.)

Project 1 will provide $1,000,000 in earnings and require a $5,000,000 investment.

Project 2 will provide $700,000 in earnings and require a $4,000,000 investment.

What is the Return on Investment (ROI) for these two projects?

Group of answer choices

a. Project 1 = 20% ROI

Project 2 = 17.5% ROI

b. Project 1 = $100,000 ROI

Project 2 = ($20,000) ROI

c. Project 1 = $250,000 ROI

Project 2 = $100,000 ROI

d. Project 1 = 500% ROI

Project 2 = 571% ROI