Question: 3.) first blank options are decrease or increase second blank options are accept or decline third blank options arepositive or negative fourth blank options are
Return on investment and Investment Decisions Lester Blandings, division manager of Audiotech Inc, was debating the merits of a new product-a weather radio that would put out a warning in the county in which the istener lived were under a severe thunderstorm or tornado alert. The budgeted Income of the division was 8975,000 with operating assets of $3,625,000. The proposed investment would add income of $40,000 and would require an additional investment in equipment of $4,000,000. The minimum required return on investment for the company is 23% Required: 1. Compute the rot of the following (round to the nearest whole percent): 2. The division in the radio project is not undertaken 2. The radio project alone c. The division if the radio project is undertaken 2. Compute the residual income of the following: 2. The division is the radio project is not undertaken D. The radio project alone c. The division if the radio project is undertaken 3. This depends on whether Laster's division is evaluated on the basis of Rotor on the basis of residual income. Overall din Rot wills the basis for evaluation, she will the investment. On the other hand, residual income for the project is overat residual income of the division is evaluated on the basis of residual income, the project wit be in III SOIT ROTI and will
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