Check my wont 8. Exercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] 166 points Selected sales and operating data for three divisions of different structural engineering firms are given as follows: SA Aer operating sa Mat operating incom Minimum required rate of ten BEVIS # 6,500,000 31,300,000 . 364.000 31.000 DIVENO $ 10,500,000 15,250,000 1,000,000 19.204 BEVILOR 9,600,000 1.920,000 273,600 10.00 Required 1 Compute the return on investment (ROI) for each division using the formule stated in terms of margin and turnover 2. Cor ute the residual income foss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 20% rate of return a. If performance is being measured by ROI, which diision or divisions will probably accept or reject the opportunity b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. R2 Reg 30 Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. Os not Found intermediate actions and your answers to decals) Turnover ROI Dion A Division Division Reg 2 > LUTU-1, LO 10-2) 166 points Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Salan Average operating aanta Net operating income NER required rate of return BEWER $6,500,000 $1,300,000 $ 364,000 21.000 DIVLMEG DIVL 9 10,500,000 89,600,000 5,250,000 1,990,000 $ 1,000,000 273,600 196205 18.000 Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover, 2. Compute the residual income foss) for each division. 3. Assume that each division is presented with an Investment opportunity that would yield a 20% rate of return a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? References Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 1 Reg 38 Compute the residual income (loss) for each division. (Do not round Intermediate calculations. Loss amounts should be Indicated by a minus sign.) Division A Division B Division Residual income (ons) MC Grau HII MacBook Air Ty w musunens USING Hotum on Investment (ROI) and Residual Income [LO10-1, LO10-2) 166 points Selected sales and operating data for three divisions of different structural engineering firms are given as follows Division DEVELO Sales $ 6.500.000 $ 10,500,000 $9,600,000 Average operating net $1,300,000 $5.250.000 1.920,000 Net operating income $ 364,000 $1,000,000 273.600 Minimum required rate of return 21.00 19.200 18.00 ook Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (oss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 20% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? References Complete this question by entering your answers in the tabs below. Req1 Req2 Peg Req 38 Assume that each division is presented with an investment opportunity that would yleld a 20% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C MacBook AT 1166 points Selected sales and operating data for three divisions of different structural engineering firms are given as follows: DEVLON DVD Divine Salon $6,500,000 310,500,000 9,600,000 Average operating net $ 1.300,000 15,250,000 1.920,000 Net operating incon $ 364,000 $ 1,000,000 273,600 Minimum required rate of return 71.000 19.205 18.00 Book Print 0 0 Required: 1. Compute the return on Investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 20% rate of return. a. I performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? References Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3A Req36 Assume that each division is presented with an investment opportunity that would yield a 20% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division Reg 3A aw MacBook AS
