Division A Division B Sales revenue $ 720,000 $ 1,080,000 Cost of goods sold and operating expenses 540,000 810,000 Net operating income Average invested assets $ 180,000 $ 270,000 $ 2,000,000 $ 1,350,000 The company's hurdle rate is6 percent. Required: 1. Compute division A's return on investment (ROI) and residual income. 2. The company is considering an investment that will increase each division's operating income by $122,000. The total investment required is $1,600,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for division A after the investment is made. 3. Will division A's manager support this investment? Why or why not? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Compute division A's return on investment (ROI) and residual income for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) ROI Residual Income (Loss) Division A % Division A Sales revenue $ Cost of goods sold and operating expenses 540,000 Net operating income Average invested assets $ 720,000 $ 1,080,000 180,000 $ 270,000 Division B 810,000 $ 2,000,000 $ 1,350,000 The company's hurdle rate is6 percent. Required: 1. Compute division A's return on investment (ROI) and residual income. 2. The company is considering an investment that will increase each division's operating income by $122,000. The total investment required is $1,600,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for division A after the investment is made. 3. Will division A's manager support this investment? Why or why not? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Suppose the company is considering an investment that will increase each division's operating income by $122,000. The total Investment required is $1,600,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for division A after the investment is made. (Enter your ROI answers as a percentage rounded to two decimal places, (ie., 0.1234 should be entered as 12.34%. ) ) ROI Residual Income (Loss) Division A Show less