Baird Technologies, Inc. has three divisions. Baird has a desired rate of return of 13.0 percent. The operating assets and income for each division are as follows: Operating Operating Divisions Assets Income $ 98,000 97,940 55,860 $ 560,000 Printer Copier 830,000 380,000 Fax $1,770,000 $251,800 Total Baird headquarters has $122,000 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: Expected ROIS for Additional Investments Divisions Printer 14.5% Copier 13.5% 12.5% Fax Required a-1. Calculate the ROI for each division. a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $122,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $122,000 of investment funds? d. Which division offers the best investment opportunity for Baird? 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. Req G2 to G4 Req A1 Req A2 to D Req G1 Calculate the ROI for each division. (Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) ROI Printer Division Copier Division Fax Division Req G2 to Req A1 Req G1 Req A2 to D G4 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 $122,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $122,000 of investment funds? d. Which division offers the best investment opportunity for Baird? Show lessA a-2. Which division manager is currently producing the highest ROI? Based on ROI, which division manager would be most eager to b. accept the $122,000 of investment funds? Based on ROI, which division manager would be least likely to accept the $122,000 of investment funds? Which division offers the best investment opportunity for Baird? C. d. Req G2 to Req G1 Req A1 Req A2 to D G4 Calculate the residual income at the corporate (headquarters) level before the additional investment. Residual income Req G2 to Reg A2 to D Req A1 Req G1 G4 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 A Residual Income (loss) (2) Printer division Copier division Fax division (3) Printer division Copier division Fax division (4) Printer division Copier division Fax division
