Adams Technologies, Inc. has three divisions. Adams has a desired rate of return of 13.0 percent. The operating assets and income for each division are as follows: Operating Divisions Printer Copier Fax Operating Income $ 96,800 97,580 54,760 $249,140 Assets $ 550,000 820,000 370,000 $1,740,000 Total Adams headquarters has $121,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROls Division:s Printer Copier Fax Expected ROIs for Additional Investments 14. 5% 13.5% 12.5% Requirec a-1. Calculate the ROI for each division a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $121,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $121,000 of investment funds? d. Which division offers the best investment opportunity for Adams? g. Calculate the residual income (1) At the corporate (headquarters) level before the additional investment. (2) At the division level before the additional investment. (3) At the investment level (4) At the division level after the additional investment. Req A1Re A2 to D Req G1Req G2 to G4 Calculate the ROI for each division. (Round your answers to 1 decimal place. (1.e., .234 should be entered as 23.4).) ROI Printer Division Copier Division Fax Division Req A1 Req A2 to D Req A1 Req A2 to DReq G1Req G2 to G4 a-2. |Which division manager is currently producing the highest ROl? Based on ROl, which division manager would be most eager to accept the $121,000 of investment funds? Based on ROI, which division manager would be least likely to accept the $121,000 of investment funds? C. d. Which division offers the best investment opportunity for Adams? Req G1 > Req A1Req A2 to DReq G1 Req G2 to G4 Calculate the residual income at the corporate (headquarters) level before the additional investment Residual income Req A2 to D Req G2 to G4 Req A1Req A2 to D Req G1 Req G2 to G4 Calculate the residual income: (Loss amounts should be indicated by a minus sign.) (2) At the division level before the additional investment. (3) At the investment level (4) At the division level after the additional investment. Residual Income (loss) (2) Printer division Copier division Fax division (3) Printer division Copier division Fax division (4) Printer division Copier division Fax division ReqG1 Req G2 to G4