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Furniture Division: begin{tabular}{lrr} & Year 1 & multicolumn{1}{c}{ Year 2 } hline Sales & $36,000,000 & $38,300,000 Operating income & 1,450,000 & 1,500,000
Furniture Division: \begin{tabular}{lrr} & Year 1 & \multicolumn{1}{c}{ Year 2 } \\ \hline Sales & $36,000,000 & $38,300,000 \\ Operating income & 1,450,000 & 1,500,000 \\ Average operating assets & 8,950,000 & 8,950,000 \end{tabular} Houseware Division: \begin{tabular}{lrr} & Year 1 & \multicolumn{1}{c}{ Year 2 } \\ \hline Sales & $12,000,000 & $12,600,000 \\ Operating income & 650,000 & 560,000 \\ Average operating assets & 5,700,000 & 5,700,000 \end{tabular} that Year 2 data will remain unchanged. The expected operating incomes and the outlay required for each investment are as follows: \begin{tabular}{lrr} & Espresso-Pro & Mini-Prep \\ \hline Operating income & $28,000 & $15,100 \\ Outlay & 230,000 & 180,000 \end{tabular} Required: Round your answers to four decimal places befone converting to a percentage. For example, .06349 would be rounded to 0635 and entered as " 6.35 " percent. 1. Compute the ROI for each investment. 2. Compute the divisional ROI for each of the following four alternatives: a. The Espresso-Pro is added. % b. The Mini-Prep is added. % c. Both investments are added. % d. Neither investment is made; the status quo is maintained. %
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