RO/RI H.W.Example The division manager of a high-tech products company is considering a proposed new product. The division's budgeted income is currently $725,000 with operating assets of $3,625,000 The proposed investment would add income of $640,000 and would require an additional investment in equipment of $4,000,000. The minimum required return on investment for the company is 12%. Round all numbers to two decimal places. I. Compute the ROI of the: a. division if the project is not accepted. b. project alone. C. division if the project is accepted. 2. Compute the residual income of the: a. division if the project is not accepted. b. project alone C. division if the project is accepted. What do you think the manager will do regarding this proposed investment? Explain EVA H.W.example: Queens Company had net after-tax income last year of $12,375,400 and total capital employed of SI 11,754,000. Its cost of capital was 9 %. Calculate the EVA for Queens Company. Is the company creating or destroying wealth