申論題

五、15%
The following data pertain to the Western Division of Global Company:

The company uses responsibility accounting concepts when evaluating performance； Western’s Division manager is contemplating the following three investments. He can invest up to $450,000.
 Required:

4. If Global has an imputed interest charge of 23%, compute the residual income of investment No. 3. If Western’s Division manager is evaluated by residual income, is this investment attractive from Western’s perspective? From Global’s perspective? Why?