The Clipper Corporation had net operating income of $380,000 and average operating assets of $2,000,000. The corporation requires a return on investment of 18%. A division of Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division currently has a return on investment of 20% and its manager is evaluated based on the division calculate the company's return on investment (ROI) and residual income (RI).

Company's return on investment (ROI) = Net operating income / Average operating assets

Company's return on investment (ROI) = 380000/2000000

Company's return on investment (ROI) = 19%

Residual income =  Net operating income - Return on investment*Average operating assets

Residual income = 380000 - 18%*2000000

Residual income = $20,000

ROI of new investment = Net operating income/Investment  

ROI of new investment = 12950/70000

ROI of new investment = 18.50%

ROI of overall company if investment taken place = Total net operating income/ Total average operating assets

ROI of overall company if investment taken place = (380000+12950) / (2000000+70000)

ROI of overall company if investment taken place = 18.98%.

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported