Question 1 Partially correct Mark 1.00 out of 4.00 Flag question Edit question ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had an operating income of $900,000 and net assets of $4,000,000. Detroit Motors has a target rate of return of 16 percent. (a) Compute the return on investment. (Round your answer to three decimal places.) 23 X (b) Compute the residual income. $ 260,000 (C) The Mustang Division has an opportunity to increase operating income by $250,000 with an $800,000 investment in assets. 1. Compute the Mustang Division's return on investment if the project is undertaken. (Round your answer to three decimal places.) 24.211 X 2. Compute the Mustang Division's residual income if the project is undertaken. $ 390,000