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Please answer the two red X questions The Mustang Division of Detroit Motors had an operating income of $900, 000 and net assets of $5,

Please answer the two red X questionsimage text in transcribed

The Mustang Division of Detroit Motors had an operating income of $900, 000 and net assets of $5, 000, 000. Detroit Motors has a target rate of return of 16 percent, fa) Compute the return on investment. (b) Compute the residual income. (c) The Mustang Division has an opportunity to increase operating income by $200, 000 with an $850, 000 investment in assets. Compute the Mustang Division's return on investment if the project is undertaken. Compute the Mustang Division's residual income if the project is undertaken

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