P13.10 (ROI and RI) Magna Products has three divisions, A, B, and C. The current investments in and net profits earned by each division are as follows: $1,000,000 $75,000 Division A Investment Net profit Division B Investment Net profit Division C Investment Net profit $1,500,000 $90,000 $2,000,000 $150,000 Each division has put forward to the parent board a capital expenditure proposal for $500,000. Each expects to produce net profits of $40,000 from that investment. Magna's cost of capital is 7% per year. Use ROI and RI calculations to a. Evaluate the current performance of each division. b. Evaluate which proposal the board should approve if finance limits the decision to a single proposal