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: 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 8% 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 probably accept 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 rounc Round your answers to 2 decimal places.) Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss indicated by a minus sign.) ssume that each division is presented with an investment opportunity that would yield a 8% rate of return. If performance is eing measured by ROI, which division or divisions will probably accept or reject the opportunity? Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or refect the opportunity? 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: 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 8% 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 probably accept 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 rounc Round your answers to 2 decimal places.) Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss indicated by a minus sign.) ssume that each division is presented with an investment opportunity that would yield a 8% rate of return. If performance is eing measured by ROI, which division or divisions will probably accept or reject the opportunity? Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or refect the opportunity
