You have been presented with the following information.

Division ADivision BExisting capital employed$400,000,000$200,000,000Expected ROI from existing investments for the current period13%15%Investment opportunity$40,000.000$20,000,000Expected ROI from the investment opportunity for the current period14%14%

The current organisation-wide hurdle rate is 10%. The current industry wide ROI is 11%.

Based on the information above, which of the following is correct?

[Select one or more statements.]

Group of answer choices

A.If Division B accepts the investment opportunity, it would expect a higher residual income for the current period.

B.If Division B accepts the investment opportunity, it would expect a higher ROI for the current period.

C.The expected residual income for Division A for the current period is higher than for Division B because the hurdle rate is lower than the current industry-wide ROI.

D.The expected residual income for Division A is higher than for Division B for the current period because Division A employs more capital.