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The Pasta Division manager of Whole Grain Corporation is considering investing in a project that had sales of $5,500,000 and operating income of $500 000
The Pasta Division manager of Whole Grain Corporation is considering investing in a project that had sales of $5,500,000 and operating income of $500 000 last year The total assets of the project were $2,750,000, whilo current liabilities were $280,000. Whole Grain Corporation's target rate of return is 15%. Pasta Dvision's ROI before the investment is 20% What is the project's Residual Income (RI) and would the Pasta Division's manager accept or reject the project if the division manager is evaluated based on RI? O A $412,500 and accopt OB. $87,500 and accept OC. $129,500 and accept OD $87 500 and reject
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