XOM Corporation has two divisions: Reardon and Timber. Data for the two divisions are as follows: Reardon Timber $725,000 $920,000 Sales revenue Variable cost ratio Fixed costs 55% 35% $263,750 $473,000 Operating $500.000 $1,250,000 assets Each division can invest in a project that requires an investment in operating assets of $100,000 (i.e., the project would increase the division's asset base by $100,000 if it chooses to invest). The project is expected to generate $11,000 of sales revenue for the division and there would be no additional expenses associated with the project. If divisions are evaluated based on return on investment and the firm requires a minimum rate of return of 10.5%, then which division or divisions will accept this investment opportunity? Only Reardon will accept Only Timber will accept Both Reardon and Timber will accept Neither Reardon nor Timber will XOM Corporation has two divisions: Reardon and Timber. Data for the two divisions are as follows: Reardon Timber $725,000 $920,000 Sales revenue Variable 55% 35% cost ratio Fixed costs $263,750 $473,000 Operating $500,000 $1,250,000 assets Each division can invest in a project that requires an investment in operating assets of $100,000 (i.e., the project would increase the division's asset base by $100,000 if it chooses to invest). The project is expected to generate $11,000 of sales revenue for the division and there would be no additional expenses associated with the project. If divisions are evaluated based on return on investment and the firm requires a minimum rate of return of 10.5%, then which division or divisions will accept this investment opportunity? Only Reardon will accept Only Timber will accept Both Reardon and Timber will accept Neither Reardon nor Timber will accept