1 Homework Exercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO10-1, LO10-2 Selected sales and operating data for three divisions of different structural engineering firms are given as follows Sales 7,380,000S 11,30,000 10,400,000 5 1,460,000 5,650,000 2,080,000 Net operating income Minimun required rate of returm 27.0 29.80 24.00 % Required Compute the return on investment (RO for each divsion using the formula stated in terms of margin and turnover 2 Compute the residual income (loss) for each divesion 3 Assume that each division is presented a. If performance is being measured by ROL, which division or divisions wi b. If performance is being with an investment opportunity that would yield a 27% rate of return. measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 2 Req 3AReg 3 Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (D calculations. Round your answers to 2 decimal places.) Division C Homework Exercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income LO10-1, LO10-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows 7,380,000 11,300,00 $ 10,4ee, e00 s 1,460,005,658,000 5 2,080,000 467,201,175,200 379,600 Average operating assets Net operating income Minimun required rate of return 7,0 20.8e 24.00% Required 1 Compute the return on investment 00 for each division using 2 Compute the residual income (loss) for each division 3. Assume that each division is presented with an investment opportunity that would a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, the formula stated in terms of margin and turnover yield a 27% rate of return which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Compute the residual income (loss) for each division. (Do not round intermediate ndicated by a minus sign.) calculations. Loss amounts should be Residual income (oss) ework Saved Exercise 10-12 Eveluating New Investments Using Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows Sales Average operating assets Net operating Lncone tinimun required rate of return s 7,380,000 $ 11,300,eee $ 18,400,090 $ 1,460,000 5,650,000 $ 2,088,000 467,280 1,175,280 379,600 24.6ex 27.00% 20.803 Required: the return on investment ROn for each division using the formula stated in terms of margin and turnover 2. Compute the residual income (loss) for each division 3. Assume that each division is presented a If performance is being measured by ROl, which division or divisions will probably accept or reject the opportunity? with an investment opportunity that would yield a 27% rate of return. b If performance is being measured by residual income, which division o divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Assu me that aach division is presented with an investment opportunity that, ould yield a 27% rate of return ir performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B