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Jordan Technologies, Inc. has three divisions. Jordan has a desired rate of return of 12.0 percent. The operating assets and income for each division are

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Jordan Technologies, Inc. has three divisions. Jordan has a desired rate of return of 12.0 percent. The operating assets and income for each division are as follows: Divisions Printer Copier Fax Total Operating Assets 630,000 900,000 450,000 $1,980,000 Operating Income $104,580 99,900 63,000 $267,480 Jordan headquarters has $129,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROls: Divisions Printer Copier Expected ROIS for Additional Investments 13.55 12.58 11.5% Req A1 Reg A2 to D Req G1 Req G2 to G4 Calculate the residual income at the corporate (headquarters) level before the additional investment. Residual income Reg A2 to D Req G2 to G4 > Req A1 Reg A2 to D Req G1 Req G2 to G4 Calculate the residual income: (Loss amounts should be indicated by a minus sign.) (2) At the division level before the additional investment. (3) At the investment level. (4) At the division level after the additional investment. Show less Residual Income (loss) (2) Printer division Copier division Fax division (3) Printer division Copier division Fax division Printer division Copier division Fax division

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