Hoffman Ceramics, a division of Piper Corporation, has an operating income of $82,000 and total assets of $410,000. The required rate of return for the company is 10%. The company is evaluating whether it should use return on investment (ROI) or residual income (RI) as a measurement of performance for its division managers. The manager of Hoffman Ceramics has the opportunity to undertake a new project that will require an investment of $164,000. This investment would earn $21,320 for the company. Read the Requirement 1. What is the original return on investment (ROI) for Hoffman Ceramics (before making any additional investment)? First determine the formula to calculate the ROI. (Enter the percentage to two decimal places.) The original return on investment (ROI) for Hoffman Ceramics is %. Requirements 1. What is the original retum on investment (ROI) for Hotiman Ceramics (before making any additional investment)? 2. What would the ROI be for Hoffman Ceramies if this investment opportunity were undertaken? Would the manager of the Hotfman Ceramics division want to make this investenent if she were evaluated based on ROI? Why or why not? 3. What is the ROl of the investment opportunity? Would the investment be desirabie trom the standpoint of Piper Corporation? Why or why not? 4. What would the residual income (Ri) be for Holfman Ceramics if this investment opportunily wero to be undertaken? Would the manager of the Hotman Ceramics division want to make this investment if she were evaluated based on Rl? Why or why not? 5. What is the Rl of the investment opportunity? Would the invesiment be desirable from the standpoint of Piper Corpotation? Why or why not? 6. Which performance measurement method, ROI or Ri, promotes goal congruence? Why? nako this investment if the were ovalualed base undertaken, the yaluated based or of the investment entage to two decimal places: unity is 4. poration this irvestment desirable. The ROI of the investment opportunity Piper's recuired rate of return