The following information relates to the Quilt Division of TDS Corporation for last year: Assume that Quilt was being evaluated solely on the basis of residual income.Which of the following investment opportunities would Quilt want to invest in?
A)Option A
B)Option B
C)Option C
D)Option D

Question

The following information relates to the Quilt Division of TDS Corporation for last year:  Assume that Quilt was being evaluated solely on the basis of residual income.Which of the following investment opportunities would Quilt want to invest in? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

The Quilt Division's residual income would increase if either investment opportunity were accepted because the rates of returns on the projects exceed the minimum required rate of return.

The Following Information Relates to the Quilt Division of TDS