McCormick Corporation measures the performance of its divisions by using the resdual income approach, with a minimum accepted rate of return of 16 percent in 2000, the printing division, which has total assets of $\$ 250.0 \% 0$. generated a net income of $\$ 55,000$, or 8 percent of sales. The operating resules are expected to be the same in 2001 . In early 2001 , the printing division receives a proposal for a $\$ 50 .(\times 0)$ investment that would generate an additional $\$ 10,000$ of income per year.

1. Should the manager of the printing division make the investment?

2. Would your answer to (1) be different if McCormick Corporation used the ROI approach to evaluate the performance of its various divisions? Why or why not?