Gold Coast Yachts Company currently evaluates the performance of its two division managers using return on investment (ROI). For the forthcoming period, divisional estimates of relevant measures are: Sales Expenses Average invested assets Sai Kung Division $ Stanley Division $ Total Company $ 6,000,000 24,000,000 30,000,000 21,000,000 26,400,000 15,000,000 5,400,000 5,000,000 20,000,000 The managers of both operating divisions have the autonomy to make decisions regarding new investments. The manager of the Sai Kung Division is proposing an investment in an additional asset that would generate an ROI of 14 percent, and the manager of the Stanley Division is proposing an investment in an additional asset that would generate an ROI of 19 percent. Required: (a) Compute the projected return on investment (ROI) for each division (8 marks) disregarding the proposed new investments. Explain whether you think the manager of each division would consider investing in the proposed new investment. Compute the projected return on investment for the company as a whole. (4 marks) Explain whether each division manager's decision in part (a) would be likely to be consistent with overall corporate goals. (c) If the company evaluates the division managers' performances using a (4 marks) residual income (RI) measure with a required rate of return (hurdle rate) (d) of 17%, Explain whether the outcomes of the investment decisions by the managers would be different from those described in part (a) Given the results in part (a) and (c), explain what decisions the managers (4 marks) of Sai Kung Division and Stanley Division should make regarding the new investments