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Superior Division of the Monroe Company has to invest in a new project. The project an incremental operating income ol $73.350 on average invested assets

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Superior Division of the Monroe Company has to invest in a new project. The project an incremental operating income ol $73.350 on average invested assets of $900,000. Superior Division currenty has operating income of $425,000 on average invested $4,325,000,Monroe Company has a 7% hurdle ratefor new projects. (25 points) assets of a. What is Superior Division's ROI before making an investment in the project? 42 5oco olz?25,000. b. What is Superior Division's residual income before making an investment in the project? 925/000- ( 325000 x %) oco- 302, 75 122,25o R c. What is Superior Division's ROl after making the investment in the project? 325090 522pa d. What is Superior Division's residual income after making the investment in the project? 98,350 365,A5 - 132,6o0

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