Exercise 10-12 (Algo) Evaluating New Investments Using Return on Investment (ROI) and Residual Income (LO10-1, LO10-2) 1.4 point Selected sales and operating data for three divisions of different structural engineering firms are given as follows: DIVINO BE 12,720,000 314,000,000 526,500,000 ve operating asset ..100.000 #7.420.000 15.300.000 Het operating income 636,000 1593,60 18,00 Minimum required rate of retum 145 101 165 Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and move 2. Compute the residual income foss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of retum. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Print old rences Complete this question by entering your answers in the tabs below. Reg! Reg2 RegJA Reg 38 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 ROI % Dision A Division DMC Res2)