Gable Ceramics, a division of Gammaro Corporation, has an operating income of 577,000 and total assets of $440,000. The required rate of retum for the compary is 10%. The company is to undertake a new project that will require an investment of $110,000. This investrent would eam $13,200 for the company. Read the reguicements Requirement 1. What is the ongind retum on investment (ROD) for Gable. Ceramics (before making any additional imvestment)? Fist determine the formula to calculate the ROL. Requirements 1. What is the onginal refum on investment (AO) for Gable Ceramits (before making any asdional imvestment!? 2. What would the Rol be for Cable Ceramies if this imventment opporanyy were unseraken? Woild the manager of the Cable Cerarics division wank to make this imvestenent if she were evaluated based on Ror? Why or why not? 3. What is the ROE of the investment opportunity Would the investment be desirable from the standpoint of Gammare Comorasion? Why or why nof? 4. What wovld the residual income (Rd) be for Oable Ceramica it Eis investment opportunity were to be undertaken? Would se mansger of the Ciable Ceramics division want to make this investment if she were evaluated based on Ri? Why or why not? 5. What is the Rt of the investrent opportunty? Would the mestment be clesirable frem the standpoint of Oartinaro Corporation? Why or why not? 6. Which performance messurement method. ROI er R1, promotes gow cengruence? Why