Exercise 10-12 (Algo) Evaluating New Investments Using Return on Investment (ROI) and Residual Income (L010-1, LO10-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows ce Division Division Division Sales $ 12,540,000 $ 14,630,000 26,125,000 Average operating assets $3,135,000 57,315,000 $ 5,225,000 Net Operating Income 5 627.000 5.585,200 $ 836,000 Minion required rate of return 10% 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 15% rate of return a If performance is being measured by ROI. wnich division or divisions will probably accept or reject the opportunity bif 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: Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3A RegJB Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 1 decimal place) Margin Turnover ROP Division A Division B Division % 5. X % Ro42 Reg 1 Reg 2 Req 3A Ren 3B Compute the residual income (loss) for each division. (Do not round Intermediate calculations. Loss amounts should be indicated by a minus sign.) Division Division Division Residual income (less) Re 1 Reg 2 Reg Reg 30 Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Book Print ferences Division A Division B Division ( Req2 Req38 Complete this question by entering your answers in the tabs below. Req1 Req2 Req3A Reg 35 Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance being measured by residual income, which division or divisions will probably accept or reject the opportunity Division A Division B Division