Sunrise Corporation has a return on investment of 15%.A Sunrise division,which currently has a 13% ROI and $750,000 of residual income, is contemplating a massive new investment that will reduce divisional ROI and produce $120,000 of residual income.If Sunrise strives for goal congruence, the investment:
- should not be acquired because it reduces divisional ROI.
- should not be acquired because it produces $120,000 of residual income.
- should not be acquired because the division's ROI is less than the corporate ROI before the investment is considered.
- should be acquired because it produces $120,000 of residual income for the division.
- should be acquired because after the acquisition, the division's ROI and residual income are both positive numbers.