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  3. ling company reported operating income of $175,000

Ling Company reported operating income of $175,000 in January 2020. The following shows their balance...

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Accounting

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Ling Company reported operating income of $175,000 in January 2020. The following shows their balance sheet for January, 2020 month end. Their balance of operating assets at January 1, 2020 was $875,000. Account Payable Loan Payable Liabilities 175,000 125,000 Cash Account receivable Inventory Plant & Equipment Goodwill Accumulated Depreciation Asset 200,000 30,000 20,000 800,000 5,000 45,000 Equity 710,000 The following investment opportunities are available to the division: Income Investment Investment Opportunity 1 2 3 4 $18,000 80,000 110,000 40,000 $200,000 600,000 500,000 200,000 The firm requires a minimum return of 13% on all investment opportunities which is consistent with the rate of return required by investors. The company's marginal tax rate is 25%. Required: What is the most effective method of evaluating performance to motivate desired behaviour

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