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Megatronics corporation a massive retailer of electronic products, is organized in four separate divisions. The four divisional managers are evaluated at year-end and bonuses are

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Megatronics corporation a massive retailer of electronic products, is organized in four separate divisions. The four divisional managers are evaluated at year-end and bonuses are awarded based on ROI Last year the company as a whole produced a 15 percentretarn on its investment: During the past week management of the company's Northeast Division was approached about the possibility of buying a competito that had decided to redirect is retail activities. If the competitor is acquired it will be acquired at its book value:) The data that follow -relate torecent performance of the Noitheast Division and the competitor: capital would beineeded Required: 1. Gompute the current ROI of the Northeasti Division and the division's ROl if the eompetitor is acquired 2. If divisional=management is being evaluated on the basis of ROI; will the Northeast Bivision likely pulsue acquisition of the competitor? 3-a. Compute the ROT of the eompetitor as it is now and after the intended upgrade 3-b. If ROT is used as the basis fol evaluation, would Megatronics Eorporation likely be in favar of the acquisition of the competitor? 4. Calculate the Northeast Division's Rol afte racquisition=of competitor but before upgrading 5-a. Assume that:Megtronics uses residual income to evaluate performance and desires a 10 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division's residual-income if the competitoris acquired. 5-b. If divisional management is being evaluated-on the basis of residuaFincome, will the Northeast Division likely pursue acquisition of the competitor? Complete this question by entering your answers-in the tabs below: Compute the current ROI of the Northeast Division and the division's ROI if the competitor is acquired. (Round your answers to 2 decimal places-(i.e, 1234 should be entered as 12.34).) Complete this question by entering your answers in the tabs below. Compute the ROI of the competitor as it is now and after the intended upgrade. Calculate the Northeast Division's ROI after acquisition of competitor but before upgrading. (Round your places (i.e., .1234 should be entered as 12.34).) Assume that Megatronics uses residual income to evaluate performance and desires a 10 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division's residual income if the competitor is acquired

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