please use explanation when answering!

- The chemical division in a large company currently has an operating income of $150,000 and operating assets of $1,000,000. - The manager is looking to expand and considering two potential projects: - Project 1: Increases operating income by $35,000 a year with investment of $500,000 in operating assets at the beginning of the year. - Project 2: Increases operating income by $60,000 a year with investment of $500,000 in operating assets at the beginning of the year. - The manager can invest in each of the projects, in both, or in none. - Assume that in order to give the chemical division money to invest, corporate headquarters need to raise the capital (either by debt or equity), and pay 10% return a year (interest or dividend) to the capital providers. Required: 1. If the manager is evaluated according to operating income (and so expected to maximize operating income), will the manager take project 1 , project 2 or both? 2. If the manager is evaluated according to ROI (and so expected to maximize ROI ), will the manager take project 1 , project 2 or both? 3. What is the optimal decision for the company as a whole