alue added (EVA). investment (ROI). 1-27A Comparison of ROI and RI (Learning Objective 5) Hawkins Ceramics, a division of Piper Corporation, has an operating income of $64,000 /and total assets of $400,000. The required rate of return for the company is 12%. The company is evaluating whether it should use ROI or RI as a measurement of performance for its division managers. The manager of Hawkins Ceramics has the opportunity to undertake a new project et will require an investment of $100,000. This investment would earn $14,000 for Hawkins Ceramics. Requirements 1. What is the original ROI for Hawkins Ceramics (before making any additional investment)? 2. What would the ROI be for Hawkins Ceramics if this investment opportunity were under- taken? Would the manager of the Hawkins Ceramics division want to make this invest- ment if she were evaluated based on ROI? Why or why not? 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Piper Corporation? Why or why not? 4. What would the RI be for Hawkins Ceramics if this investment opportunity were under- taken? Would the manager of the Hawkins Ceramics division want to make this invest- ment if she were evaluated based on RI? Why or why not? 5. What is the RI of the investment opportunity? Would the investment be desirable from the standpoint of Piper Corporation? Why or why not? 0. Which performance measurement method, ROI or RI, promotes goal congruence? Why