educationwileycom wi: NWP Assessment Player Ul A... 6 ACC-650 TOPIC 7 Assignment Question 7 of 12 / 5 E View Policies Current Attempt in Progress Paula Boothe, president of the Concord Corporation, has mandated a minimum 6% return on investment for any project undertaken by the com pany. Given the compa ny's decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 8%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 15% return on investment for the past three years. This year is not expected to be different from the past three. Koch has just received a proposal to invest $ 1,897,000 in a new line of energy drinks that is expected to generate $ 234,200 in operating income. (a) Calculate the residual income for the proposed new line of energy drinks. Residual income $ eTextbook and Media Save for Later Attempts: 0 of 3 used educationwileycom wi: NWP Assessment Player Ul A... 6 ACC-650 TOPIC 7 Assignment Question 7 of 12 / 5 E View Policies Current Attempt in Progress Paula Boothe, president of the Concord Corporation, has mandated a minimum 6% return on investment for any project undertaken by the com pany. Given the compa ny's decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 8%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 15% return on investment for the past three years. This year is not expected to be different from the past three. Koch has just received a proposal to invest $ 1,897,000 in a new line of energy drinks that is expected to generate $ 234,200 in operating income. (a) .(b). If Martin Koch is evaluated based on residual income, will he choose to invest in the new line of energy drinks? 4 eTextbook and Media Save for Later Attempts: 0 of 3 used