6. Suppose that the company's minimum required rate of return on operating assets is 15% and...

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6. Suppose that the company's minimum required rate of return on operating assets is 15% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product line by itself. c. Compute the Office Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line. 1. Residual income for this year 2. Residual income for the new product line by itself 3. Residual income for next year < Req 5 Req 6D > Show less Req 1 to 3 Req 4 Req 5 Req 6A to 6C Req 6D 1. Compute the Office Products Division's ROI for this year. 2. Compute the Office Products Division's ROI for the new product line by itself. 3. Compute the Office Products Division's ROI for next year assuming that it performs the same as this year and adds the new product line. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 1. ROI for this year 2. ROI for the new product line by itself 3. ROI for next year % % % < Req 1 to 3 Req 4 > Show less Req 1 to 3 Req 4 Req 5 Req 6A to 6C Req 6D If you were in Dell Havasi's position, would you accept or reject the new product line? Accept Reject < Req 1 to 3 Req 5 > Req 1 to 3 Req 4 Req 5 Req 6A to 6C Req 6D Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? Adding the new line would increase the company's overall ROI. Adding the new line would decrease the company's overall ROI. < Req 4 Req 6A to 6C > Req 1 to 3 Req 4 Req 5 Req 6A to 6C Req 6D Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line? Accept Reject < Req 6A to 6C Req 6D > 6. Suppose that the company's minimum required rate of return on operating assets is 15% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product line by itself. c. Compute the Office Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line. 1. Residual income for this year 2. Residual income for the new product line by itself 3. Residual income for next year < Req 5 Req 6D > Show less Req 1 to 3 Req 4 Req 5 Req 6A to 6C Req 6D 1. Compute the Office Products Division's ROI for this year. 2. Compute the Office Products Division's ROI for the new product line by itself. 3. Compute the Office Products Division's ROI for next year assuming that it performs the same as this year and adds the new product line. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 1. ROI for this year 2. ROI for the new product line by itself 3. ROI for next year % % % < Req 1 to 3 Req 4 > Show less Req 1 to 3 Req 4 Req 5 Req 6A to 6C Req 6D If you were in Dell Havasi's position, would you accept or reject the new product line? Accept Reject < Req 1 to 3 Req 5 > Req 1 to 3 Req 4 Req 5 Req 6A to 6C Req 6D Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? Adding the new line would increase the company's overall ROI. Adding the new line would decrease the company's overall ROI. < Req 4 Req 6A to 6C > Req 1 to 3 Req 4 Req 5 Req 6A to 6C Req 6D Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line? Accept Reject < Req 6A to 6C Req 6D >

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