?Dust Co has two divisions, A and B. Each division is currently considering the following?separate projects:??
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Division A? ? ? ? ? ? ? ? ? ?Division B?
Capital required for the project? ? ? ? ? ? ? ? ? ? $32.6 million? ? ? ? ? ? ?$22.2 million?
Sales generated by the project? ? ? ? ? ? ? ? ? ? $14.4 million? ? ? ? ? ? ? ?$8.8 million?
Operating profit margin? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?30%? ? ? ? ? ? ? ? ? ? ? ? ? ? ?24%?
Cost of capital? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?10%? ? ? ? ? ? ? ? ? ? ? ? ? ? ?10%?
Current return on investment of division? ? ? ? ? ? 15%? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?9%?
If residual income is used as the basis for the investment decision, which division(s)?would choose to invest in the project??