Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below:

	Division
	Asia		Europe		North America
Sales	$	10,000,000	$	12,000,000	$	23,000,000
Average operating assets		2,500,000		4,300,000		9,200,000
Net operating income		375,000		350,000		828,000
Minimum required rate of return		15%		11 %		17%

Required:

1.	Compute the ROI for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations and round your final answers to the nearest whole percent.) Asian Division%___________ Europe Division%___________ North American Division % ___________

2.	Compute the RI for each division. Asian Division___________ Europe Division___________ North American Division ___________

3.	Assume that each division is presented with an investment opportunity that would yield a 14% rate of return.

Asian Division___________

Europe Division___________

North American Division ___________

a.	If performance is being measured by ROI, which division(s) will probably accept the opportunity? Reject the opportunity?

Asian Division___________

Europe Division___________

North American Division ___________

b.	If performance is being measured by RI, which division(s) will probably accept the opportunity? Reject the opportunity?

Asian Division___________

Europe Division___________

North American Division ___________

Asian Division %___________

Europe Division%___________

North American Division% ___________

***Please show all workout and be specific which question you are answering. Thanks.