Colona Electronics Company paid $12 million in cash 5 years ago to acquire a company that manufactures CD-ROM drives. This company has been operated as a division of Colona and has lost $800,000 each year since its acquisition. The minimum desired return for this division is that, when a new product is fully developed, it should return a net profit of $800,000 per year for the foreseeable future. Recently, the MKS Corporation offered to purchase the division from Colona for $4 million. The president of Colona commented, "I've got an investment of $16 million to recoup ($12 million plus losses of $800,000 for each of 5 years). I have finally got this situation turned around, so I oppose selling the division now." Requirement 1. Prepare a response to the president's remarks. Indicate how to make this decision. Be as specific as possible. million in the division or invest it elsewhere. If projects or divisions of comparable The $16 million is for decision purposes. The company must consider whether to invest $ risk can be expected to generate more than $yearly, the division should be