Dingo Division's Operating Results Include: Controllable Margin of $150000 Sales

Multiple Choice

Dingo Division's operating results include: controllable margin of $150000 sales totaling $1200000 and average operating assets of $500000. Dingo is considering a project with sales of $100000 expenses of $86000 and an investment of average operating assets of $200000. Dingo's required rate of return is 9%. Should Dingo accept this project?

A) Yes ROI will drop by 6.6% which is still above the minimum required rate of return.
B) No the return is less than the required rate of 9%.
C) Yes ROI still exceeds the cost of capital.
D) No ROI will decrease to 7%.