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2 Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6 percent. Selected operating data for the three

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2 Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6 percent. Selected operating data for the three divisions follow: points $ Sales revenue Cost of goods sold Miscellaneous operating expenses Average invested assets Peak View Grand 325,000 $ 220,000 $ 298,000 216,000 123,000 202,000 45,000 36,000 39,000 1,100,000 990,000 1,000,000 eBook Hint Required: 1. Compute the return on investment for each division (Enter your ROI answers as a percentage rounded to two decimal places, (.e., 0.1234 should be entered as 12.34%)) References Peak View Grand Return on Investment 2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign.) Peak View Grand Residual income (LOS)

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