EXERCISE 12-11. Evaluating Investment Centers; ROI versus RI [LO 2]Consider the following data, which relate to the two divisions of McIntyre Products:

Division 1 Division 2

Total assets $69,000,000 $23,000,000

Noninterest-bearing current liabilities 4,500,000 2,300,000

NOPAT 12,000,000 5,900,000

Required rate of return 11% 10%

REQUIRED

Compare the two divisions in terms of return on investment and residual income. In the past year, which division has created the most wealth for McIntyre shareholders?