Northlake Electronics Company paid $4 million in cash 4 years ago to acquire a company that manufactures CD-ROM drives. This company has been operated as a division of Northlake and has lost $500,000 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 $500,000 per year for the foreseeable future. Recently, the JMB Corporation offered to purchase the division from Northlake for $2 million. The president of Northlake commented, "I've got an investment of $6 million to recoup ($4 million plus losses of $500,000 for each of 4 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. The $6 million is for decision purposes. The company must consider whether to invest $ million in the division or invest it elsewhere. If projects or divisions of comparable risk can be expected to generate more than $ yearly, the division should beThe $6 million is for decision purposes. The company must consider whether to invest $ million in the division or invest it elsewhere. If projects or divisions of comp pected to generate more than $ yearly, the division should be irrelevant relevantThe $5 million is E for decision purposes. The company must consider whether to invest $|:| million in the division or invest it elsewhere. If projects or divisions oi comparable risk can be expected to generate more than $|:| yearly. the division should he IE held. sold