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Isadora, Inc. is evaluating a division's performance using both ROI and residual income.

Isadora, Inc. is evaluating a division's performance using both ROI and residual income.  Using a cost of capital of 11%, the residual income is $8,000.  Given this data, Isadora's ROI will be: 
       a. less than 11%.                          
       b. equal to 11%.                
       c. greater than 11%
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