just #4

Use the following information for the next THREE questions. Elliott Corporation has three divisions with the following results last year. Return on Investment Division X Division Y Division Z 9% 14% 22% Residual Income (based on a 12% required rate of ($6,000) $20,000 560,000 return) Each division has the opportunity to invest in a new product line that is expected to yield a 16% return. 2. If the divisions are evaluated based on Return on Investment, which divisions will accept the new investment opportunity? a. Only Division X b. Only Division Y c. Only Divisions X and Y d. Divisions X, Y, and Z 3. If the divisions are evaluated based on Residual Income, which divisions will accept the new investment opportunity? a. Only Division X b. Only Division Y c. Only Divisions X and Y d Divisions X. Y. and Z 4. Division X has average net operating assets of a $200,000 b. $50,000 C$66,667 d: Cannot be determined with the given information