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Fill in missing information to calculate company - wide metrics. E 1 7 . 7 ( LO 3 ) , AN While reviewing last year

Fill in missing information to calculate company-wide metrics.
E17.7(LO 3), ANWhile reviewing last years performance outcomes for comparison to this year, Jana finds several pieces are missing. Apparently, a virus attacked select components of the systems memory, and the back-up information was too difficult to extract from the file. She knows that all three divisions use the corporate tax rate (26%), minimum rate of return (10%), and WACC (8%) to determine their respective RI and EVA metrics. The following information reflects the components that Jana could identify for each of the three divisions in the company.
Industrial Technology Service
Sales $125,000 G M
Operating income $10,000 $17,500 N
After-tax operating income A H $16,650
Operating assets $80,000 I O
Total assets $100,000 $190,000 P
Current liabilities $5,000 J $10,000
ROI B 10% Q
RI C K $12,500
EVA D $1,750$8,650
Profit margin E L 15%
Asset turnover F 2 R
Required
1. Fill in the missing items (lettered A through R) for each of the three divisions. For ROI calculations, operating assets are considered investments.
2. Calculate the companys overall ROI, RI, and EVA for last year according to your now-complete information; there are no intracompany transactions in these amounts.
3. The company has the following investment opportunity: a nondepreciable asset purchase of $75,000 with projected operating income of $10,000 per year. Unfortunately, the company has only enough resources for one division to make this investment. Which divisional manager(s) would likely jump at the chance to make this investment? Would the company be open to any division making this investment? Explain.

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