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The Mustang Division of Detroit Motors had an operating income of $900,000 and net assets of $5,000,000. Detroit Motors has a target rate of return

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The Mustang Division of Detroit Motors had an operating income of $900,000 and net assets of $5,000,000. Detroit Motors has a target rate of return of 16 percent. Required Compute the return on investment. Compute the residual income. The Mustang Division has an opportunity to increase operating income by $200,000 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

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