Stenback Ceramics, a division of Sesnie Corporation, has an cperating incorne of $78,000 and total assets of $416,000. The required tate of return for the company is 14%. The company is opportunty to undertake a new project that wit require an investment of $104,000. This investment would eam $15,600 for the conpany. Read the teguirments. Requirement 1. What is the original tetuen on investment (ROI) for Slenback Ceramics (bofore naking any additional investrnent)? Finst determine the formula to calculate the ROI. Requirements ate of return for the hanagers. The man by. 1. What is the original return on investment (ROI) for Stenback Ceramics (before making any additional investment)? 2. What would the ROI be for Stenback Ceramics if this investment opportunity were undertaken? Would the manager of the Stenback Ceramics division want to make this investment if she were evaluated based on ROI? Why or why not? 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Sesnie Corporation? Why or why not? 4. What would the residual income (RI) be for Stenback Ceramics if this investment opportunity were to be undertaken? Would the manager of the Stenback Ceramics division want to make this investment if she were evaluated based on RI? Why or why not? 5. What is the RI of the investment opportunity? Would the investment be desirable from the standpoint of Sesnie Corporation? Why or why not? 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why