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Please please help me in all parts of the question! Thank you! Exercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income

image text in transcribedimage text in transcribedPlease please help me in all parts of the question! Thank you!

Exercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income (LO10-1, LO10-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $ 6,400,000 $ 1,600,000 $ 352,000 18.00% Division B $ 10,400,000 $ 5,200,000 $ 988,000 19.00% Division C $ 9,500,000 $ 2,375,000 $ 261,250 15.00% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 19% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req Req 3B Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin Turnover ROI Division A % % % Division B % Division C % %

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