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PART V (40 POINTS) SJL Co. is a manufacturing company that has two major investment centers. Both divisions have required a significant investment, and management

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PART V (40 POINTS) SJL Co. is a manufacturing company that has two major investment centers. Both divisions have required a significant investment, and management wants to compare the performance of the two divisions. Below is information related to the two divisions. $100,000,000 $80,000,000 $150,000,000 Division 1: Sales: Expenses: Asset investment: Division 2: Sales: Expenses: Asset investment: $200,000,000 $160,000,000 $500,000,000 Management currently requires investments to meet a rate of return on asset investment of 5%. Required: 1. Which Division has the greatest level of "residual income"? 2. Which Division has the highest Return on Investment

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