Hints. . Calculate the ROI without the projec Quick Check and with the new project Calculate the Residual income without and with the new project . Redmond Awnings, is a division of HomeMart Inc and is considering a new project. The following data is available:- - Divisional operating income is $60,000 - Divisional average operating assets are $300,000. - Required rate of return for the company is 15%. Any projects above this "hurdle rate" should be adopted. - The manager of the division gets a bonus based on ROI - The new project requires an investment of $100,000 in operating assets and will generate additional net operating income of $18,000 per year CONCLUSIONS Manager likes project Project is good for company Yes No No No Yes Yes No Yes 28