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Capital Investments has two divisions. Each division's required rate of return is 15%. Planned operating results for 2017 are as follows: (Click the icon to

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Capital Investments has two divisions. Each division's required rate of return is 15%. Planned operating results for 2017 are as follows: (Click the icon to view the planned operating results.) Read the requirements. Requirement a. What is the current ROI for each division? Begin by selecting the formula to calculate ROI, then compute the ROl for each division ROI Division A Division B Requirement b. What is the current residual income for each division? Begin by selecting the formula to calculate the residual income (RI), then compute the Ri for each division. RI Division A Division B Requirement c. Capital is planning an expansion that will require each division to increase its investments by $25,000,000 and its income by $4,500,000. Assuming the managers are evaluated on either ROI or residual income, which division (f either) is pleased with the expansion? Begin by calculating the revised ROI and RI for each division. (Round each percentage to the nearest tenth percent. .%.) ROI RI Division A Division EB When considering residual income, the expansion. When ROl is considered Vthe expansion. More Info Division Operating income Investment A S 15,000,000100,000,000 $ 50,000,000 $ 11,000,000 S Print Done

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