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Haniwall Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections that are assembled on customers' lots. Haniwall expanded into

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Haniwall Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections that are assembled on customers' lots. Haniwall expanded into the precut housing market when it acquired Miramichi Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into packages, and shipped to customers' lots for assembly. Haniwall designated the Miramichi division as an investment centre. Haniwall uses the return on investment as a performance measure and defines investment as the average operating assets. Management bonuses are based in part on the ROI. All investments are expected to earn a minimum rate of return of 17%. Miramichi's ROI has ranged from 21.9% to 23.3% after it was acquired. Miramichi had an investment opportunity in 2022 that had an estimated ROI of 19%. Miramichi's management decided against the investment because it believed the investment would decrease the division's overall ROI. Selected financial information for Miramichi is presented below. The division's average operating assets were $7.5 million for the year 2022. Would the management of the division have been more likely to accept the investment opportunity it had in 2022 if residual income had been used as a performance measure instead of the ROI? Explain your

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