Exercise 11-14 (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: Sales Average operating asta Net operating income Minimum required rate of return Division $12,840,000 $ 3,210,000 564,960 6.00N Division $ 28,840,000 $ 7,210,000 $ 346,080 6.500 Division $ 26,050,000 5,210,000 $ 255, 450 14.500 Required: 1. Compute the margin, turnover, and return on investment (ROI) 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 yield a 7% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probobly accept the opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3A Reg 36 Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations. Round your answers to 2 decimal places) Margin Turnover ROI Division A Division B Division % 4 % Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req 3A Reg 38 Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be Indicated by a minus sign) Division A Division Division Residual income oss) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 fea 3A Reg 38 Assume that each division is presented with an investment opportunity that would yield a rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division Dwision Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 Assume that each division is presented with an investment opportunity that would yield a 7% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division Division