The following is partial information for Charleston Company's most recent year of operation. It manufactures lawn mowers and categorizes its operations into two divisions: Bermuda and Midiron. Midiron Division 600,000 $ Bermuda Division Sales revenue ? Average invested assets $ 2,500,000 Net operating income $ 160,000 Profit margin 20% Investment turnover ? Return on investment ? Residual income $ 40,000 $ 150,000 ? 0.16 2 (30,000) $ Required: 1. Without making any calculations, determine whether each division's return on investment is above or below Charleston's hurdle rate. 2. Determine the missing amounts in the preceding table. 3. What is Charleston's hurdle rate? 4-a. Suppose Charleston has the opportunity to invest additional assets to help expand the company's market share. The expansion would require an average investment of $2,800,000 and would generate $140,000 in additional income. Calculate the return on investment of the proposed expansion. 4-b. From Charleston's perspective, is this a viable investment? 5. Suppose the two divisions would equally share the investment and profits from the expansion project. If return on investment is used to evaluate performance, what will each division manager think about the proposed project? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Without making any calculations, determine whether each division's return on investment is above or below Charleston's hurdle rate. The Bermuda Division's return on investment is The Midiron Division's return on investment is Charleston's hurdle rate. Charleston's hurdle rate. Required 1 Required 2 >