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Le Sud Retailers has a current return on investment of 24% and the company has established an 13% minimum rate of return for the division.

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Le Sud Retailers has a current return on investment of 24% and the company has established an 13% minimum rate of return for the division. The division manager has two investment projects available, for which the following estimates have been made: Project A - Net operating income = $36,000, operating assets = $400,000 Project B - Net operating income = $60,000, operating assets = $500,000 If the manager is evaluated based on Residual Income, which project will get funded? O Project B O Project A O Neither project O Both projects

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