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Saxwell Corporation has many divisions and evaluates them using ROI. The corporation's expected ROI for each division is 14 percent or above. Earnings Investment base

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Saxwell Corporation has many divisions and evaluates them using ROI. The corporation's expected ROI for each division is 14 percent or above. Earnings Investment base Division 1 $ 720,000 6,000,000 Division 2 $ 2,400,000 15,000,000 Assume that the manager of division 2 has the opportunity to purchase a new piece of equipment for $3,000,000 that would increase earnings by $300,000 per year. a. Show the impact of this purchase on division 2's ROI. b. Would the manager of division 2 be motivated to undertake the investment

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