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Selected sales and operating data for three divisions of a multinational structurat engineering firm are provided below: Required: 1. Compute the ROI for each division
Selected sales and operating data for three divisions of a multinational structurat engineering firm are provided below: Required: 1. Compute the ROI for each division using the formula stated in terms of margin and tumover. (Do not round intermediate calculations and round your final answers to the nearest whole percent.) 2. Compute the RI for each division. (Negative amounts should be indicated by a minus sign.) 3. Assume that each division is presented with an investment opportunity that would yield a 13% rate of retum. a. If performance is being measured by ROr, 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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