News Mogul Group has two major divisions print and Internet. Summary financial data (in millions) for 2019 and 2020 are as follows: information) Data table between the two divisions Uso 2020 total assets - A B D E F G three decimal plnoon, XXXX) ROI 1 2 Operating Income Revenues Total Assets 2010 2020 2019 2020 2010 2020 $ 3,790 $4,500 $ 18,100 $ 22,500 $ 18,500 $ 25,000 546 690 25,200 23.000 11,400 10,000 3 Print 4 Internet - ROIs between the two divisions. More info bt. The Internet Division has a high ROI due to The Internet Division has a high ROI despite The two division managers' annual bonuses are based on division ROI (defined as operating income divided by total assets). If a division reports an increase in ROI from the previous year, its management is automatically eligible for a bonus; however, the management of a division reporting a decline in ROI has to present an explanation to the News Mogul Group board and is unlikely to get any bonus. het . The Internet Division has a low ROI pe Internet Division has a low ROI despite - X More info new system, despite her belief in the tment proposal is accepted is The Carol Mays, manager of the print division, is considering a proposal to invest $860 million in a new computerized news reporting and printing system. It is estimated that the new system's state-of-the-art graphics and ability to quickly incorporate late-breaking news into papers will increase 2021 division operating income by $110 million. News Mogul Group uses a 10% required rate of return on investment for each division Whi Print Done Next News Mogul Group has two major divisions: print and Internet. Summary financial data (in millions) for 2019 and 2020 are as follows: Click the icon to view the data) (Click the icon to view the division managers' annual bonus information.) Requirement 1. Use the DuPont mothod of profitability analysis to explain differences in 2020 Rois between the two divisions. Use 2020 total assets as the investment base, Determine the formulas needed, then calculate the ROI for both divisions in 2020. (Round all ration to three decimal places, X.XXX) ROL Print Internet Use the DuPont method of profitability analysis. Select the choice that explains the differences in 2020 ROls between the two divisions O A The Print Division has a relatively low ROI because of its high incomo margin relative to Internet. The Internet Division has a high ROI due to a high investment tumover because of its very low income margin OB. The Print Division has a relatively low ROI because of its low income margin relative to Internet. The Internet Division has a high ROI despite a low investment tumover because of its high low income margin OC. The Print Division has a relatively high ROI because of its high income margin relative to Internet. The Internet Division has a low ROI despite a high investment turnover because of its very low incomo margin. OD. The Print Division has a relatively high ROI because of its low income margin relative to Internet. The Internet Division has a low ROI despite a high investment turnover because of its very high income margin. Requirement 2. Why might Mays be less than enthusiastic about accepting the investment proposal for the new system, despite her belief in the benefits of the new technology? (Round all ratios to three decimal places, X.XXX.) Begin by calculating the ROI of the investment proposal and the ROI of the print division including the investment proposal The ROI of the investment proposal is and the ROI of the print division if the investment proposal is accepted is Why might Mays be less than enthusiastic about accepting the investment proposal? Next News Mogul Group has two major divisions print and Internet. Summary financial data (in millions) for 2019 and 2020 are as follows: DUH Uy Gay PUIUL WIVUSTI PRUUGIRU U PUI DE PRIVIBIU HILUUNIY WIL WIVUDURI PIUUD The ROI of the investment proposal is and the ROI of the print division if the investment proposal is accepted is Why might Mays be less than enthusiastic about accepting the investment proposal? Requirement 3. Brett Mendenhall, CEO of News Mogul Group, is considering a proposal to base divinon executive compensation on division RI a. Compute the 2020 RI of each division (Round your answers to the nearest whole dollar Use parentheses or a minus sign for negative Ris) Print Internet b. Would adoption of an RI measure reduce Mays' reluctance to adopt the investment proposal for the new computerized system? Begin by calculating the RI for the investment proposal. (Use parentheses or a minus sign for a negative RI.) The Ri for the investment proposal is Investing in the fast-speed printing press will have the Print Division's residual income. Requirement 4. Mendenhall is concerned that the focus on annual ROI could have an adverse long-run effect on News Mogul Group's customers. What other measurements, if any, do you recommend that Mendenhall use? Explain briefly O A. Mendenhall may want to consider nonfinancial measures such as newspaper subscription levels, internet audience size, repeat purchase patterns, and market share. These measures will require managers to invest in areas that have favorable long-run effects on News Mogul Group's customers. O B. Mendenhall could consider using RI. The use of Ri motivates managers to accept any project that makes a positive contribution to net Income after the cost of the invested capital is taken into account. Making such investments will have a positive effect on News Mogul Group's customers OC. Both A and B. D. None of the above. There are no further recommendations. Mendenhall should only focus on annual ROI. Next