ROI and Residual Income: Impact of a New Investment The Mustang Division of Detroit Motors had an operating income of $1,000,000 and net assets of $4,000,000. Detroit Motors has a target rate of return of 16 percent. (a) Compute the return on investment. () (b) Compute the residual income. $ (c) The Mustang Division has an opportunity to increase operating income by $300,000 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