Anderson Ceramics, a division of Piper Corporation, has an operating income of $63,000 and total assets of $420,000. The required rate of roturn for the company is 11%. The company is evaluating whether it should use refum on investment (ROI) or residual income (R1) as a measurement of performance for its division managnes The manager of Anderson Ceramics has the opportunity to undertake a new project that will require an imvestment of $140,000. This investment would aam $18, 200 foe the company. Read the roguirments Requirement 1. What is the original retum on investment (ROI) tor Anderson Ceramics (before making any additional imestment)? First determine the formula to calculate the ROI. Requirements 1. What is the original retum on investment (ROI) for Anderson Ceramics (before making any additional investment)? 2. What would the Roi be for Anderson Ceramics if this investment opportunity were undertaken? Would the manager of the Anderson Ceramics division want to make this investment if she were evaluated based on ROl? 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 residual income (RI) be for Anderson Ceramics if this investment opportunity were to be undertaken? Would the manager of the Anderson Ceramics division want to make this investment if she were evaluated based on Rl? Why or why not? 5. What is the Rl of the investment opportunity? Would the investment be desirable from the standpoint of Piper Corporation? Why or why not? 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why