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Altoona Technologies, Incorporated (ATI) has three divisions. ATI has a desired rate of return of 12.5 percent. The operating assets and income for each division
Altoona Technologies, Incorporated (ATI) has three divisions. ATI has a desired rate of return of 12.5 percent. The operating assets and income for each division are as follows: ATI headquarters has $120,000 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: 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 $120,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $120,000 of investment funds? d. Which division offers the best investment opportunity for ATI? 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. Complete this question by entering your answers in the tabs below. Calculate the ROI for each division. Note: Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4). 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 $120,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $120,000 of investment funds? d. Which division offers the best investment opportunity for ATI? Calculate the residual income at the corporate (headquarters) level before the additional investment. Calculate the residual income: Note: 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. Altoona Technologies, Incorporated (ATI) has three divisions. ATI has a desired rate of return of 12.5 percent. The operating assets and income for each division are as follows: ATI headquarters has $120,000 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: 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 $120,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $120,000 of investment funds? d. Which division offers the best investment opportunity for ATI? 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. Complete this question by entering your answers in the tabs below. Calculate the ROI for each division. Note: Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4). 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 $120,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $120,000 of investment funds? d. Which division offers the best investment opportunity for ATI? Calculate the residual income at the corporate (headquarters) level before the additional investment. Calculate the residual income: Note: 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
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