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CO Return on Investment and Investment Decisions Leslie Blandings, division manager of Audiotech Inc, was debating the merits of a new product weather side
CO Return on Investment and Investment Decisions Leslie Blandings, division manager of Audiotech Inc, was debating the merits of a new product weather side that would put out a warning the county which the rved were under a severe thunderstorm or turnado alert The burgeted income of the vision was $775,000 with operating assets of $4,225,000. The proposed investment would ad income of $640,000 and additional investment in equipment of $4,000,000. The minimum required return on investment the the company is 1S Required: 1. Compute the Bot of the following (mund to the nearest whole The divison if the radis pripet is not undertak The rade project alone The dion if the radio project is undertake 2. Compute the residual incams of the following The vision if the radis project is not undertak The r The division if the radio project is undertaken. 3. This depends on whether Leslie's diven evaluated on the basis of not or on the basis of residual incens Overall division not wils, the investment. On the other hand, residual income for the project is overall residual income. If the division is evaluated on the basis of residual income, the project wit be FACE Next M
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