I need an explanation (the why) for accept or reject under each condition under 3..

Problem 4
Selected sales and operating data for three divisions of different structural engineering firms are given as follows:
			Division A	Division B	Division C
Sales			$ 6,700,000	$ 10,700,000	$ 9,800,000
Average operating assets			$ 1,340,000	$ 5,350,000	$ 1,960,000
Net operating income			$ 388,600	$ 1,048,600	$ 298,900
Minimum required rate of return			22.00%	19.60%	19.00%
Required:
1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Round
your answers to 2 decimal places.)
						100	use only with Margin
	Margin	Turnover	ROI
Division A	5.80	5.00	29.00
Division B	9.80	2.00	19.60	Margin =	Net operating income
Division C	3.05	5.00	15.25		Sales		Turnover =	Sales
								Average operating assets
2. Compute the residual income (loss) for each division. (Loss amounts should be indicated by a minus sign. Round
your "Required rate of return" to 2 decimal places.)
			Division A	Division B	Division C
Average operating assets			$ 1,340,000
Required rate of return			22.00%
Required operating income			$ 294,800
Actual operating income
Required operating income (above)
Residual income (loss)
3. Assume that each division is presented with an investment opportunity that would yield a 24% rate of return.
a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity?
Division A
Division B
Division C
b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity?
Division A
Division B
Division C
Actual Homework Turn In)