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Consider the following data for the most recent years from a division: Year Sales Operating Income Investment 2020 2021 $ 1,000,000 $2,000,000 $ 489,00 $
Consider the following data for the most recent years from a division: Year Sales Operating Income Investment 2020 2021 $ 1,000,000 $2,000,000 $ 489,00 $ 1,20e, cee $ 1,388,889 $ 3,6eeeee Assume that the minimum rate of retum Is 8%. Two requirements: Required 1: Following what we discussed in the lecture videos, analyze the change in the financial performance using basic measures, such as return on sales, asset turnover, return on investment, and residual Income. In your own words. Interpret what each measure and number tell us Toolbar navigation BIUS == lil HI II! Required 2: A proposed new project, which requires an additional $1,000,000 Investment, will generate $150,000 additional operating Income. Should the division accept this new project and why? Show your work and reasoning. Toolbar navigation BI VS A
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