Req 1, Req 2, Req 3, Req 4.

7. 216 points Exercise 10-12 (Algo) 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 Hums are given as follow Division DEVE Division Sales $ 12,210,000 5 14,245,00 $ 25,437,500 Average operating assets 5 3,052,500 32.122.500 5.5.687,500 Het operating income $610, 500 5 569,00 314,000 Min required rate of return 145 Ses TOK Required: 1 Compute the return on investment (ROI) for each division Ung the formule stated in terms of margin and turnover 2 Compute the residual income (los) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return a If performance is being measured by ROL which division or divisions will probably accept or reject the opportunity bIf performance is being mesured by residual income, which division or divisions will probably accept or reject the opportunity BO TO But Complete this question by entering your answers in the tabs below. Reg1 R2 Reg Compute the residual income (ous) for each division (Do not round intermediate clations to Mount the indicated by a mission) Division A Division Division Residual income C Reg 1 RegSA > 7 Exercise 10-12 (Algo) Evaluating New Investments Using Return on Investment (ROI) and Residual Income (L010-1, LO10-2) 2.16 ponts Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division Division Division Sales $ 12,210,000 $ 14,245,000 5 25,437,500 Average operating assets 5 3,052,500 5 7,122,500 $ 5,087,500 Net operating Incone $ 610, 500 5 569,800 5 314,000 Minimum required rate of return 100 Boch P Required: 1 Compute the return on investment (RON) for each division using the formule 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 15% rate of return a. Ir 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 . References Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg Reg 3 Assume that each division is presented with an investment opportunity that would yield o 15% rate of return, If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division Division B Division 7 2.56 points Exercise 10-12 (Algo) Evaluating New Investments Using Return on Investment (ROI) and Residual Income (L010-1, LO10-2) Selected antes and operating data for three divisions of different structural engineering tims are given as follows: Division Division Division Sales $ 12,210,000 $ 14,245,000 $125,417,00 Average operating 5,052,500 52,122.500 35,087,500 Tot operating in $ 610,00 $ 569,00 $814,000 Minimum required rate of return 14 Required: 1 Compute the return on investment (ROI) for each division using the formule stated in terms of margin and turnover 2. Computere residual income fossy for each division 3. Assume that each division is presented with an investment opportunity that would yield 15 rate of return a. If performance is being measured by ROI, which division of divisions will probably accept or reject the opportunity b. If porformance is being measured by residual income, which dicono divisions will probably accept or reject the opportunity eo Complete this question by entering your answers in the tabs below. RI R2 Assume that each division is presented with an investment opportunity that would yeld 15 of retum performance being mored by redus come, which diw or divisions will probably accept or reject the opportunity DA Dovrsion is Onion (Rega