Return on investment and Economic Value Added Calculations with varying Assumptions XII Products son of Poker Textiles Inc. During the coming year, it expects to earn inconte of $320,000 based on sales of 53.15 million without any new investments, the division will have average operating assets of 3 million. The division is considering a capital investment project-adding knitting machines to produce Gaiters that we an additional investment of 5600,000 and increases net income by $57,500 (cales would increase by $575,000). It made the investment would increase beginning operating by 5600,000 and ending operating assets by $430,000. Assume that the actual cost of capital for the company is Required: 1. Com the ROI for the division without the investment Round your answer to two decimal places 2. Compute the main and turnover rates without the investment Show that the product of the margin and tumover ratios equals the rol computed in Requirement1 Hound your answers to two decimal places 3. Concept Connection: Compute the ROI for the division with the new investment. Round your answer to one decimal place Do you the divisional manager will approve the investment? 4. Conceitual Connection Compute the margin and turnover rates for the division with the new investment, Hound your answers to two decimal places. How do the Car with the old ratios? 5. Oct Connection Compute the EVA of the division with and without the investment Required: 1. Compute the Rol for the division without the investment. Round your answer to two decimal places 2. Computis the margin and turnover ration without the investment show that the product of the margin and turnover ratios equals the Rot computed in Sequirement ! Round your showers to two decimal places Morgen Turn ROT 3. Concrete Connection Compute the Rol for the division with the new investment. Round your answer to decimal place. Do you think the divisional manager will prove the investment? 4. Conceptual Connection Comote the margin and turnover ratios for the division with the new investment. Round your answers to two decimal places. How do the compare with the old ratios? Mar 5. Concept Connections Compra the EVA of the division with and without the rivestiment EVA without the investment EVA with the investment Should the manager decide to the writing machine investment