Question 4 Beadle company has two divisions, X and Y, each with their own cost and revenue streams. Each is managed by a divisional manager who has the autonomy to make all investment decisions within the division. The cost of capital for both divisions is 15%. Historically, investment decisions have been made by calculating the return on investment (ROI) of any opportunities and at present, the return on investment for each division is 20% Each division is currently considering the following separate investments: Capital required for investment Sales generated by investment Net profit margin Division X $105,000,000 $70,000,000 249% Division Y $60,000,000 $45,000,000 17% Required: (a) Calculate the retum on investment for each division (b) Calculate the residual income for each division (c) Comment on the performance of both divisions (d) Explain the benefits of assessing divisional performance