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b Saved Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below. 15 Sales Average operating assets Net
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Saved Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below. 15 Sales Average operating assets Net operating income Minimum required rate of return Division Asia Europe North America $ 14,000,000 $ 16,000,000 $ 27,000,000 3,500,000 5,720,000 10,800,000 525,000 460,000 972,000 15% 11% 17% 10 points 8 00:58:45 Required: 1. Compute the ROI for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations and round your final answers to the nearest whole percent.) ROI Asia division VA 26 Europe division North America division 2. Compute the RI for each division. RI Asia division Europe division North America division 3. Assume that each division is presented with an investment opportunity that would yield a 14% rate of return Exam Saved 1 15 3. Assume that each division is presented with an investment opportunity that would yield a 14% rate of return a. If performance is being measured by ROI, which division(s) will probably accept the opportunity? Reject the opportunity? 10 points ROL Asia division 00:58:26 Europe division North America division b. If performance is being measured by RI, which division(s) will probably accept the opportunity? Reject the opportunity? RI Asia division Europe division North America division MoytStep by Step Solution
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