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Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below. Required: 1. Compute the ROI for each division
Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below. Required: 1. Compute the ROI for each division using the formula stated in terms of margin and turnover. (Do not round Intermedlate calculations and round your flnal answers to the nearest whole percent.) 2. Compute the RI for each division. 3. Assume that each division is presented with an Investment opportunity that would yleld a 14% rate of return. a. If performance Is being measured by ROI, which divIsion(s) will probably accept the opportunity? Reject the opportunity b. If performance Is being measured by RI, which division(s) will probably accept the opportunity? Reject the opportunity
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