Return on Investment for Multiple Investments, Residual Income The manager of a division that produces add-on products for the automobile industry has the investments, the division will have average assets for the coming year of $28.9 million Air conditioner Turbocharger Outlay $1,050,000 $540,000 Operating income 90,000 86,080 Required: 1. Compute the ROI for each investment project. Round to the nearest whole percent. Air conditioner, ROI % Turbocharger, ROI 96 2. Compute the budgeted divisional ROI for each of the following four alternatives. Round 2. The air conditioner investment is made. b. The turbocharger investment is made. 96 c. Both investments are made 96 d. Neither additional investment is made 90 3. Conceptual Connection Assuming that divisional managers are evaluated and rewarded 4. Conceptual connection Suppose that the company sets a minimum required rate of retur 1. The air conditioner investment is made b. The turbocharger investment is made 5 Both investments are made d. Neither additionnement made Which option that the base of some Assignment Score: 609 FE Type here to search o Return on Investment for Multiple Investments, Residual Income The manager of a division that produces add-on products for the automobile industry has the investments, the division will have average assets for the coming year of $28.9 million Air conditioner Turbocharger Outlay $1,050,000 $540,000 Operating income 90,000 86,080 Required: 1. Compute the ROI for each investment project. Round to the nearest whole percent. Air conditioner, ROI % Turbocharger, ROI 96 2. Compute the budgeted divisional ROI for each of the following four alternatives. Round 2. The air conditioner investment is made. b. The turbocharger investment is made. 96 c. Both investments are made 96 d. Neither additional investment is made 90 3. Conceptual Connection Assuming that divisional managers are evaluated and rewarded 4. Conceptual connection Suppose that the company sets a minimum required rate of retur 1. The air conditioner investment is made b. The turbocharger investment is made 5 Both investments are made d. Neither additionnement made Which option that the base of some Assignment Score: 609 FE Type here to search o