The division manager of HFD Inc., was debating the merits of a new product-a toy drone with a flying radius of 25 feet. on investment for the company is 13%. Required: Download Excel spreadsheet 1. Compute the ROI of the following (round to the nearest whole percent): 3. This depends on whether division is evaluated on the basis of ROI or on the basis of residual income. Overall division ROI 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