The manager of a division that manufactures auxiliary products for the auto industry has just been given the opportunity to invest in two different projects. The first is air conditioning for the rear seats on vans and minivans. second is turbo energy charger. Without the investment, the division would have average assets for the coming year of $28.9 million and net income of $3,179 million. The things needed for each investment and the expected operating profit are as follows: Turbo Charger AC Net operating profit $67,500 $89,700 Expenditure $ 750,000 $ 690,000 The company's headquarters will borrow up to $1.5 million for an additional automotive division for further investment. The amount borrowed will be an unsecured bond at a rate of 12 percent. The marginal tax rate is 25 percent. Requested: 1.Calculate ROI for each project 2. Assume that the loan must be $1.5 million in total. Calculate residual income (RI). Based on RI, is the investment profitable?