Elf Enterprises has two divisions, Newhart and Ferrell. Information for each division for last year appears below: Newhart Ferrell Sales $4,000,000 $9,000,000 NOPAT $250,000 $450,000 Investment $1,000,000 $3,000,000 Required Rate of Return 18% 18% Reference: Ref 12-5 What is the residual income for the Ferrell Division? Answer 15% $8,460,000 ($90,000) $450,000