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NEW QUESTION: 1
An investment centre is appraising a potential project that is expected to yield a Return on Investment (ROI) of 12%.
Without the project the investment centre expects to earn an ROI of 14%. The cost of capital is 10%.
What would be the impact on the investment centre's performance measures if the project is accepted?
A. Residual Income would decrease and ROI would decrease.
B. Residual Income would increase and ROI would increase.
C. Residual Income would decrease and ROI would increase.
D. Residual Income would increase and ROI would decrease.
Answer: D

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