Return on Investment (ROI) & Residual Income P 10 - A The following reflects operating data from three independent companies. Sales capas operating assets: beg end Net operating income Minimum required rate of return A $ 4,000,000 4,500,000 5,500,000 400,000 7% 5000.000 Company B $ 12,000,000 14,000,000 10,000,000 720,000 10% $ 8,000,000 7,800,000 8,200,000 800,000 6% Required: 1) Calculate the following for each company: margin, turnover and return on investment. 2) Calculate the residual income for each company. 3) Each company has the opportunity to invest in a project that will yield 7.5%. a) If performance is measured by ROI, which of the companies will accept/reject the opportunity? (One word answer for each.) b) If performance is measured by residual income, which of the companies will accept/reject the opportunity? (One word answer for each.)