ch23 q5c

*answer C1 isnt west its either north and south or north south and west* its last attempt

Compute the residual income for each division. North Division West Division South Division (c) - Your answer is partlally correct. Assume that each division has an investment opportunity that would provide a rate of return of 16%. erformance, which division or divisions will probably make the additional investment? D measure performance, which division or divisions will probably make the additional in Your answer is partially correct. Assume that each division has an investment opportunity that would provide a rate of return of 16%. (1) If ROl is used to measure performance, which division or divisions will probably make the additional investment? (2) If residual income is used to measure performance, which division or divisions will probably make the additional investment? Presented here is selected information for three regional divisions of Cheyenne Company. (a) Compute the return on investment for each division. North Division West Dlulsion South Division (b) Compute the rosidual income for cach division. Niorth Division $ West Dlvision