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Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below: Sales Average operating assets Net operating income Mininum
Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below: Sales Average operating assets Net operating income Mininum required rate of return Division Asia Europe North America $ 27,620, $ 29,200,000 $ 40,020,22 6,750,00 12,482.ee 16.000.000 945.000 850.00 1.280.800 14% le 16% Required: 1. Compute the ROI for esch division using the formuls stated in terms of mergin and turnover. (Do not round Intermediate calculations and round your final answers to the nearest whole percent.) ROI Asia division Europe division North America division 2. Compute the Rl for each division RI Asia division Europe division North America division 3. Assume that each division is presented with an investment opportunity that would yield 13% rate of return. a. If performance is being messured by ROI, which division(s) will probably accept the opportunity? Reject the opportunity? ROI Asia division Europe division North America division b. If performance is being messured by Rl, which division(s) will probably accept the opportunity? Reject the opportunity? RI Asia division Europe division North America division
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