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Exercise 11-14 (Algo) Evaluating New Investments Using Return on Investment (ROI) and Residu Income [LO11-1, LO11-2] Selected sales and operating data for three divisions of
Exercise 11-14 (Algo) Evaluating New Investments Using Return on Investment (ROI) and Residu Income [LO11-1, LO11-2] Selected sales and operating data for three divisions of different structural engineering firms are given below: Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Compute each division's residual income (loss). 3. Assume each division is presented with an investment opportunity yielding a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will accept the opportunity? b. If performance is being measured by residual income, which division or divisions will accept the opportunity? Complete this question by entering your answers in the tabs below. Compute each division's margin, turnover, and return on investment (ROI). Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Complete this question by entering your answers in the tabs below. Compute each division's residual income (loss). Note: Do not round intermediate calculations. Loss amounts should be indicated by a minus sign
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