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Altoona Technologies, Inc. has three divisions. Altoona has a desired rate of return of 11.0 percent. The operating assets and income or each division are

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Altoona Technologies, Inc. has three divisions. Altoona has a desired rate of return of 11.0 percent. The operating assets and income or each division are as follows: Operating Operating Divisions Assets Income Printer $115,440 740,000 1,010,000 560,000 Copier Fax 101,000 72,800 $2,310,000 $289,240 Total Altoona headquarters has $140,000 of additional cash to invest in one of its divisions. The division managers have identified nvestment opportunities that are expected to yield the following ROls: Expected R0IS for Additional Investments Divisions Printer 12.5% Copier 11.5% 10.5% Fax Required a-1. Calculate the ROI for each division. a-2. Which division manager is currently producing the highest ROI? b. Based on ROl, which division manager would be most eager to accept the $140,000 of investment funds? c. Based on RO, which division manager would be least likely to accept the $140,000 of investment funds? d. Which division offers the best investment opportunity for Altoona? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional investment Complete this question by entering your answers in the tabs below. Req G2 to G4 Req A1 Req A2 to D Req G1 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. Show less Residual Income (loss) (2) Printer division Copier division Fax division (3) Printer division Copier division Fax division (4) Printer division Copier division Fax division Req G1 Req G2 to G4

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