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 ? $2,500,000 $ 160,000 20% sets Sales revenue Average invested assets Net operating income Profit margin Investment turnover Return on investment Residual income $ 150,000 0.16 $ 40,000 $ (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 Charleston's hurdle rate. The Midiron Division's return on investment is Charleston's hurdle rate. - Required 1 Required 2 > Required 1 Required 2 Required 3 Required 4 Required 5 Determine the missing amounts in the following table. (Round your ROI percentage answers to 1 decimal place, (i.e., 0.123 should be entered as 12.3%). Round investment turnover to 2 decimal places.) Bermuda Division Midiron Division 600,000 Sales revenue $ $ | $ 2,500,000 160,000 20 % $ 150,000 Average invested assets Net operating income Profit margin Investment turnover Return on investment Residual income (Loss) 0.16 $ 40,000 $ (30,000) Required 1 Required 2 Required 3 Required 4 Required 5 What is Charleston's hurdle rate? (Round your answers to 1 decimal place, (i.e. 0.123 should be entered as 12.3%.)) Charleston's Hurdle Rate Bermuda Division Midiron Division Required 1 Required 2 Required 3 Required 4 Required 5 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. Calculat the return on investment of the proposed expansion. 4-b. From Charleston's perspective, is this a viable investment? Show less 4-a. Return on Investment | 4-6. Is this a viable investment? het sy is this a viable i Suppose the two divisions would equally share the investment and profits from the expansion project. If return on investme is used to evaluate performance, what will each division manager think about the proposed project? The Midiron Division the investment the investment The Bermuda Division Required 4 Required 5 >