Donaldson, Inc

Donaldson, Inc. analyzed an investment and determined that the proposed investment will earn a return of 9.9%. Donaldson's cost of capital is 6.5% and required rate of return is 9%. Currently, Donaldson's other investments are earning 11%. Will Donaldson be motivated to accept the investment?

A) Yes, because the expected return is greater than the cost of capital
B) No, because it will cause its current return to decline
C) Yes, because the expected return is less than the required rate of return
D) No, because the expected return is less than the required rate of return