1 2 Question 2: Compare ROI and Residual Income (5 markl) 3 Northern Pride Inc. has three departments: X, Y and Z. Each department manager has been presented with a new investment opportunity that promises a 21% return on investment (ROI). The company has a minimum required return of 15% ROI for the Residual year just Income for Department ended the Year just 4 Ended 5 16% $ 20 000 6 Y 21% $ 5,000 7 z 22% $ 50,000 8 Which department(s) are likely to accept or reject the opportunity if their performance is measured by (3 marks): 1. ROI? 2. Residual income? 1. Evaluated 2. Evaluated honda 5 Fram Formulas +