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Required: 1. Compute division A's return on investment (ROI) and residual income. 2. The company is considering an investment that will increase each division's operating
Required: 1. Compute division A's return on investment (ROI) and residual income. 2. The company is considering an investment that will increase each division's operating income by $122,000. The total investment required is $1,600,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for division A after the investment is made. 3. Will division A's manager support this investment? Why or why not? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Compute division A's return on investment (ROI) and residual income for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) ROI Residual Income (Loss) Division A % Rag 1 Req 2 > Required: 1. Compute division A's return on investment (ROI) and residual income. 2. The company is considering an investment that will increase each division's operating income by $122,000. The total investment required is $1,600,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for division A after the investment is made. 3. Will division A's manager support this investment? Why or why not? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Suppose the company is considering an investment that will increase each division's operating income by $122,000. The total investment required is $1,600,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for division A after the investment is made. (Enter your ROI answers as a percentage rounded to two decimal places, (1.e., 0.1234 should be entered as 12.34 %. ) ) ROI Residual Income (Loss) Division A %
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