Business, 03.12.2019 02:31 lisxramirez

Leslie blandings, division manager of audiotech, inc. was debating the merits of a new product - a weather radio that would put out a warning in the country in which the listener lived were under a severe thunderstorm or tornado alert. the budgeted income of the division was $725,000 with operating assets of $3,625,000. the proposed investment would add income of $640,000 and would require an additional investment in equipment of $4,000,000. the minimum required return on investment for the company is 12 percent. round all numbers to two decimal places. required:
1. compute the roi of the:
a) division if the radio project is not undertaken
b) radio project alone
c) division if the radio project is undertaken
2. compute the residual income of the:
a) division if the radio project is not undertaken
b) radio project alone
c) division if the radio project is undertaken
3. conceptual connection: do you suppose that leslie will decide to invest in the new radio? why or why not?

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Leslie blandings, division manager of audiotech, inc. was debating the merits of a new product - a w...

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