The Business Situation Nass Corporation has local and international divisions, selected sales, and operating data for three local divisions of different structural engineering divisions are given as follows: South Division North East Division BD Division BD BD Sales 1,200,000 14,000,000 25,000,000 Total costs 3,000,000 7,000,000 5,000,000 Net operating income 600,000 560,000 800,000 Ranking Minimum required rate of return 14% 10% 16% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (51) 10 Mark 2. Compute the residual income for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. (cl) 5 Marks a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? Reject? Why? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Reject? Why