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(checko Cu FC Low- Part 5 - 969 FLS H 1 Problem 6 (10 points) 1 2 1 4 7 levend S45.000.000 $11.000.000 15 $30,000,000

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(checko Cu FC Low- Part 5 - 969 FLS H 1 Problem 6 (10 points) 1 2 1 4 7 levend S45.000.000 $11.000.000 15 $30,000,000 18.000.000 10 Meer Red) Com the world 12 13 14 les that when I do) IT har debe TWO G o 18 O Data Formulas Review View Page Layout mert Help General libi 1 - An -a-A- Wiap Tent Merge & Center - Normal Conditional Formats Calculati Formatting Table $ - % -83 BTU- tel Number Alionnant fo H D E Problem 6 (10 points) Quarantine, Inc has two divisions with the following information for the current year Invested Capital Division's Profit Income Min required return Division 1 545,000,000 $11,000,000 15.096 Division 2 $30,000,000 $8,000,000 10.09 Required: a) Compare the two divisions in terms of Return on Investment and Residual Income. (points) (3 parts) b) In the past year, which division has performed better for Orastie, Inc. (2 points) c) Please describe TWO advantages Residual income has over ROI as a performance evaluation metric (4 points) G o HE Type here to search (checko Cu FC Low- Part 5 - 969 FLS H 1 Problem 6 (10 points) 1 2 1 4 7 levend S45.000.000 $11.000.000 15 $30,000,000 18.000.000 10 Meer Red) Com the world 12 13 14 les that when I do) IT har debe TWO G o 18 O Data Formulas Review View Page Layout mert Help General libi 1 - An -a-A- Wiap Tent Merge & Center - Normal Conditional Formats Calculati Formatting Table $ - % -83 BTU- tel Number Alionnant fo H D E Problem 6 (10 points) Quarantine, Inc has two divisions with the following information for the current year Invested Capital Division's Profit Income Min required return Division 1 545,000,000 $11,000,000 15.096 Division 2 $30,000,000 $8,000,000 10.09 Required: a) Compare the two divisions in terms of Return on Investment and Residual Income. (points) (3 parts) b) In the past year, which division has performed better for Orastie, Inc. (2 points) c) Please describe TWO advantages Residual income has over ROI as a performance evaluation metric (4 points) G o HE Type here to search

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