Evaluating New InvestmentsReturn on Investment (ROI) and Residual Income (RI)Question:

Selected sales and operating data for three divisions of different structural engineering firms are given as follows:

	Division A	Division B	Division C
Sales	$	5,800,000		$	9,800,000		$	8,900,000
Average operating assets	$	1,450,000		$	4,900,000		$	2,225,000
Net operating income	$	284,200		$	872,200		$	191,350
Minimum required rate of return		18.00 %			17.80 %			15.00 %

Required:

1. Compute the return on investment (ROI) for each division, by first finding the margin and turnover.
   • Division A Margin = [DAM]
   • Division A Turnover = [DAT]
   • Division A ROI = [AROI]
   • Division B Margin = [DBM]
   • Division B Turnover = [DBT]
   • Division B ROI = [BROI]
   • Division C Margin = [DCM]
   • Division C Turnover = [DCT]
   • Division C ROI = [CROI]
2. Compute the residual income (RI) for each division.
   • Division A RI = [ARI]
   • Division B RI = [BRI]
   • Division C RI = [CRI]

D Question 5 1 pts Required: Compute the return on investment (ROI) for each division, by first finding the margin and turnover. o Division B Margin = [DBM] Important: Round decimals to 2-decimal places (i.e. 5.50). Specify a loss with parenthesis D Question 6 1 pts Required: Compute the return on investment (ROI) for each division, by first finding the margin and turnover. . Division B Turnover = [DBT] Important: Round decimals to 2-decimal places (i.e. 5.50). Specify a loss with parenthesis D Question 7 1 pts Required: Compute the return on investment (ROI) for each division, by first finding the margin and turnover. o Division B ROI = [BROI] Important: Round decimals to 2-decimal places (i.e. 5.50). Specify a loss with parenthesis