PARTA The Plant-Based Protein Division of Agri-Products Ltd. had sales of $84,000,000 and operating income of $12,000,000 last year. The total assets of the Plant-Based Division were $35,000,000, while current liabilities were $5,800,000. Agra-Products Ltd's target rate of return is 25%, while its weighted average cost of capital is 12.5%. The effective tax rate for the company is 21%. PART A Required: 1. Calculate ROI, profit margin and asset turnover 2. Calculate the Economic Value Added (EVA). PARTB Agri-Products is currently generating an overall ROI of 22% across all divisions. The Plant-Based Protein Division has the opportunity to invest $5 million in an expansion to their facility in Burnaby, BC. The investment would increase operating income by $1.3 million and current liabilities by $600,000. PART B Required: 1. Would the VP, Plant-Based Protein want to accept the investment opportunity if she was evaluated by her division ROI? Explain why. 2. If they are evaluated based on ROI, does Agri-Products Chief Operating Officer want the Vertical Farming Division to accept the investment opportunity? Explain why. 3. What action would you take if you were the Chief Operating Officer in this situation? Explain the benefits and risks. 4. Would your answers to parts a orb change if Agri-Products used Economic Value Added (EVA) to evaluate the performance of its divisions? Explain why