Thinking about Return on Investment (ROI) and the cost of capital; __________ would be accepted, but would make the company financially worse; and __________ would be rejected, but would make the company financially better.

1. Division Y; Division X

2. [Not enough information to make this financial judgement]

3. [Both divisions are the same]

4. Division X; Division Y

Investment Controllable contribution Current Division ROI Company Cost of Capital Division X 250,000 40,000 21% 11% Division Y 250,000 22,500 5% 11%