his Question: 16 pts 4 1 of 2 (0 complete) This Test: 36 pts poss Hepburne Ceramics, a division of Preston Corporation, has an operating income of $73,000 and total assets of $405,000. The required rate of return for the company is 14%. The company is evaluating whether it should use ROI or RI as a measurement of performance for its division managers The manager of Hepburne Ceramics has the opportunity to undertake a new project that will require an investment of $108,000. This investment would earn $21.000 for Hepburne Ceramics Requirements Requirement 1. What is the original ROI for Hepburne Ceramics (before making any additional investment)? First, select the labels to complete the formula for the return on investment, ROL. ROI What is the original return on investment (ROI) for Hepburne Ceramics? (Round your answer to two decimal places.) Hepburne Ceramics's original ROI Requirement 2. What would the ROI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepbume Caramics dion want to make this investment if she evaluated it based on ROI? Why or why not? Choose from any drop-down list and then continue to the next question Type here to search L This Question: 16 pts 1 of 2 (0 complete) This Test: 36 pts poss Hepburne Ceramics, a division of Preston Corporation, has an operating income of $73,000 and total assets of $405,000. The required rate of return for the company is 14%. The company is evaluating whether it should use ROI or RI as a measurement of performance for its division managers. The manager of Hepburne Ceramics has the opportunity to undertake a new project that will require an investment of $108,000. This investment would earn $21,000 for Hepburne Ceramics. Requirements Requirement 2. What would the ROI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepburne Ceramics division want to make this investment if she evaluated it based on ROI? Why or why not? First find the ROI for Hepbure Ceramics if this investment opportunity were undertaken (Round your answer to two decimal places.) If this investment opportunity were undertaken the ROI would be %. Would the manager of the Hepburne Ceramics division want to make this investment if she evaluated it based on ROI? Why or why not? The manager of this division make this investment because investing in the new project the division's ROI. Requirement 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Preston Corporation? Why or why not? Firet find the ROI of the investment annarnir IDAund nur neuart tun darimanlarae ? Choose from any drop-down list and then continue to the next question. L ENG 1158 2020-13 Type here to search This Question: 16 pts 1 of 2 (0 complete) This Test: 36 pts possit o Hepburne Ceramics, a division of Preston Corporation, has an operating income of $73,000 and total assets of $405,000. The required rate of return for the company is 14%. The company is evaluating whether it should use ROI or RI as a measurement of performance for its division managers. The manager of Hepburne Ceramics has the opportunity to undertake a new project that will require an investment of $108,000. This investment would earn $21,000 for Hepburne Ceramics. Requirements Requirement 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Preston Corporation? Why or why not? First find the ROI of the investment opportunity. (Round your answer to two decimal places.) The Rol of the investment opportunity is %. Would the investment be desirable from the standpoint of Preston Corporation? Why or why not? V desirable. The ROI of the investment opportunity Proston's required rate of From the standpoint of Preston Corporation, this investment return Requirement 4. What would the RI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepbume Ceramics division want to make thie invoetment if eha anahtarlit haearl on RI hur or what? 2 Choose from any drop-down list and then continue to the next question. L ENG 11 58 AM 0:12 Type here to search This Question: 16 pts 1 of 2 (0 complete) This Test: 36 pts possie st Hepburne Ceramics, a division of Preston Corporation, has an operating income of $73,000 and total assets of $405,000. The required rate of return for the company is 14%. The company is evaluating whether it should use ROI or RI as a measurement of performance for its division managers. The manager of Hepburne Ceramics has the opportunity to undertake a new project that will require an investment of $108,000. This investment would earn $21,000 for Hepburne Ceramics Requirements return Requirement 4. What would the RI be for Hepburne Ceramics if this investment opportunity were undertaken? Would the manager of the Hepburne Ceramics division want to make this investment if she evaluated it based on RI? Why or why not? Select the labels in the formula to calculate the residual income, RI. RI Now find the Rl for Hepburne Ceramics, if this investment opportunity were to be undertaken. (Use parentheses or a minus sign for a negative RI.) The Rl would be $ Would the manager of the Hepburne Ceramics division want to make this investment if she evaluated it based on RI? Why or why not? Choose from any drop-down list and then continue to the next question Type here to search o e L ENG This Question: 16 pts 1 of 2 (0 complete) This Test: 36 pts pos Hepburne Ceramics, a division of Preston Corporation, has an operating income of $73,000 and total assets of $405,000. The required rate of return for the company is 14%. The company is evaluating whether it should use ROI or RI as a measurement of performance for its division managers. The manager of Hepburne Ceramics has the opportunity to undertake a new project that will require an investment of $108,000. This investment would earn $21,000 for Hepburne Ceramics. Requirements Would the manager of the Hepburne Ceramics division want to make this investment if she evaluated it based on RI? Why or why not? want to make this investment. The Rl indicates that the division is If the manager of this division evaluates the investment based on RI, she earning V than management's expectations. Requirement 5. What is the Rl of the investment opportunity? Would the investment be desirable from the standpoint of Preston Corporation? Why or why not? Find the Rl of the investment opportunity. (Use parentheses or a minus sign for a negative RI.) The Rl of the investment opportunity is $ Would the investment be desirable from the standpoint of Preston Corporation? Why or why not? Choose from any drop-down list and then continue to the next question. ITS ENG L Type here to search This Question: 16 pts 1 of 2 (0 complete) This Test: 36 pts possi Hepburne Ceramics, a division of Preston Corporation, has an operating income of $73,000 and total assets of $405,000. The required rate of return for the company is 14%. The company is evaluating whether it should use ROI or RI as a measurement of performance for its division managers. The manager of Hepburne Ceramics has the opportunity to undertake a new project that will require an investment of $108,000. This investment would earn $21,000 for Hepburne Ceramics Requirements woulu Sun Ve US is om die stanuponcorreo IP aur: vry or why HOE desirable. The Rl of the investment opportunity is y meaning the investment opportunity From the standpoint of Preston Corporation this investment would earn than management's target required return Requirement 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why? Complete the sentences below. Between the two performance measurement methods, ROI and RI Vismore likely to promote goal congruence. The Rl of the investment alone is the division's RI by that amount. This would motivate both the division manager and the company management to the investment. The arrival at the same conclusion by both the manager and company management goal congruence. Choose from any drop-down list and then continue to the next question L Type here to search ENG 1158 2020-12- .tk This Question: 16 pts 1 of 2 (0 complete) This Test: 36 pts possible Test Hepburne Ceramics, a division of Preston Corporation, has an operating income of $73,000 and total assets of $405,000. The required rate of return for the company is 14%. The company is evaluating whether it should use ROI or Rl as a measurement of performance for its division managers. The manager of Hepburne Ceramics has the opportunity to undertake a new project that will require an investment of $108,000. This investment would earn $21,000 for Hepbume Ceramics. Requirements From the standpoint of Preston Corporation this investment desirable. The RI of the investment opportunity is meaning the investment opportunity would eam than management's target required return. Requirement 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why? Complete the sentences below. Between the two performance measurement methods, ROI and RI is more likely to promote goal congruence. The Rl of the investment alone is the division's RI by that amount. This would motivate both the division manager and the company management to V the investment. The arrival at the same conclusion by both the manager and company management goal congruence. Choose from any drop-down list and then continue to the next question. ENG Type here to search 2