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Sarah Jones, the manager of the Teen division of Eve Clothing Company, was evaluating the acquisition of a new embroidery machine. The budgeted operating income

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Sarah Jones, the manager of the Teen division of Eve Clothing Company, was evaluating the acquisition of a new embroidery machine. The budgeted operating income of the Teen division was $4, 920,000 with total assets of $32, 100,000 and noninterest-bearing current liabilities of $1, 500,000. The proposed investment would add $1, 043,000 to operating income and would require an additional investment of $5, 202,000. The targeted rate of return for the Teen division is 13.70 percent. (Ignore taxes in this problem.) Compute the ROI of the Teen division if the embroidery machine is not purchased. (Round answers to 2 decimal places, e.g. 15.32%.) ROI 15.33% Compute the ROI of the Teen division if the embroidery machine is purchased. (Round answers to 2 decimal places, e.g. 15.32%.) ROI 15.98% Compute the residual income of the Teen division if the embroidery machine is not purchased. Residual income $ -434850000 Compute the residual income of the Teen division if the embroidery machine is purchased

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