Return on Investment and Investment Decisions The division manager of HFD Incy, was debating the merits of a new product-a tov drone with a flying radius of 25 feet. The budgeted income of the division was $849,200 with operating assets of $3,860,000. The proposed investment would add income of $360,000 and would require an additional investment in equipment of $2,000,000. The minimum required return on investment for the company is 13%. Required: Dewnload Excet spreadsheet 1. Compute the ROt of the following (round to the nearest whole percent): 3. This depends on whether division is evaluated on the basis of ROL or on the basis of residual income. Overall division ROr will so if ROI is the basis for evaluation, the division manager will the investment, On the other hand, residual income for the project is and will overall residual income, If the division is evaluated on the basis of residual income, the project 2. Compute the residual income of the following: 3. This depends on whether division is evaluated on the basis of RoI or on the basis of residualincome. Overall division Ror will so if ROI is the basis for evaluation, the division manager will the investment. On the other hand, residual income for the project is and will overall residual income. If the division is evaluated on the basis of residual income, the project. will be 4. How would you reconcile the seemingly opposing results using ROI and residual income? Aside from divisional performance and management evaluations, firms have disparate goals on many factors including industry, corporate objectives, shareholder and market expectations, position of the product in the product life cycle and so on. In the gray-shaded cells, noter the appropnate amounts of formulas. An asterisk (% win appear of the cofimn to the night of an incornect atrount. The essay answer will not be graded. 213 [Kry essiny answer here] 23 23 24 26 27 28 3029 31 32 33 33 34 34 Kay estay answer here) 35 36 37 38 39 40 41 42 43 44 45 46