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Exercise 1114 (Algo) Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Selected sales and operating data for three divisions of

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Exercise 1114 (Algo) Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Required: 1. Compute the margin, turnover, and return on investment (RO) for each division: 2 Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yleld a 10% rate of retum. a. If performance is being measured by ROL, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably aept the opportunity? Complete this question by entering your answers in the tabs below. Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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