1: Investment Center Evaluation (18 points) The Imaging Division is an investment center of Medical Diagnostics Company. The Imaging Division currently has total assets of $300,000, total sales of $900,000 and 18% return on investment per year. Managers of the Imaging Division have an opportunity to invest $120,000 in a new product line that can generate additional income of $18,000 per year. Medical Diagnostics uses 13% as a minimum rate of return. a. Calculate the amount of net income generated from the Imaging Division before making an investment in the new product line. Ans: $ b. Calculate the return on investment from the Imaging Division if the new product line has been added. Ans: % (round your answer to the nearest integral if necessary, e.g., 8%) c. If the Imaging Division is evaluated based on return on investment, will the managers add the new product line? Yes No_(circle one) Why? d. How much residual income will result from the investment in the new product line? Ans: $ e. If the Imaging Division is evaluated based on residual income, will the managers add the new product line? Yes No_(circle one)